Grand Theft Mortgage Leads; Mortgage News from MortgageDaily.com


DALLAS, May 1 /PRNewswire/ Mortgage leads have become such a hot commodity that two mortgage brokers have resorted to stealing them, according to coverage from MortgageDaily.com, a dominant source of online news for the mortgage industry.

As rising interest rates have driven loan production down, mortgage originators have been forced to consider buying leads -- or data on prospective borrowers looking for a lender. But two former employees of Old Merchants Mortgage of Long Island, N.Y., were able to bribe the company's information technology expert to gain access to leads valued at more than $1.3 million, according to a statement from the Nassau County district attorney.

Eventually, Old Merchants discovered the unauthorized access and hired private investigators to set up a sting. The current employee was arrested, while the two former employees face felony charges.

But even originators who legitimately pay for mortgage leads or pay to be listed on lead-generating directories must analyze the quality of their marketing costs.

One Boston mortgage broker told MortgageDaily.com sneaky advertising practices are being used on Bankrate.com by some advertisers. He said he believes some of the lenders are touting low rate, zero-point, zero-origination loans while disguising those fees by calling them something other than points or origination fees, leading to consumer confusion.

But Bankrate.com defended its directory, telling MortgageDaily.com it has the most aggressive quality control process in the industry.

"If a lender isn't supporting the rate they advertise they can be taken off the site; there is no upside for a lender to post bad rates," a Bankrate.com spokesman said.

A Chicago-based lead generation company told MortgageDaily.com it automatically provides refunds if the information given to the originator is inaccurate.

In an effort to boost business from mortgage brokers, one California-based wholesale lender is giving its best customers free mortgage leads. In a recent announcement, the company said that its top-producing brokers will be given the leads for free if the loan is funded with them. Brokers will reportedly be charged $150 for leads closed with another mortgage wholesaler.


Read complete mortgage lead news at http://www.MortgageDaily.com/Leads.asp?spcode=pr


About MortgageDaily.com
Founded in 1998, MortgageDaily.com is a dominant online news source for the mortgage industry. Around one million mortgage business news pages are viewed monthly at MortgageDaily.com and its affiliate publications.


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Source: MortgageDaily.com