Mortgage Daily Logo
mortgage news from industry experts

Niche Lead Providers

Niche Lead ProvidersLead companies focus on subprime, FHA & reverse prospects

April 22, 2005

By COCO SALAZAR

Many originators use mortgage lead companies to find loan prospects. And like many of the loan officers they service, some of these lead providers focus on niche prospects such as customers needing subprime, FHA or reverse programs.

Lender Lead Solutions is focusing on generate leads for reverse mortgage lenders — including a name change from its former Lender Lead Banc, according to a recent announcement.

The New York-based leads company says it does more than just sell leads to originators. Additional services include training, online marketing and support for lenders.

“With 40,000 calls coming in from seniors and senior advisors all over the US in just six months, we are hearing from lenders that they need us to go beyond the leads,” Lender Lead CEO David Peskin said in the announcement. “They need this support to be at their fingertips.”

One of its new services is a half-hour sales training program that the executive claims “is making a huge impact on loan conversions.”

The popularity of reverse mortgages has surged in recent years due in part to the industry vigorously raising awareness among older homeowners, their boomer children and the professionals on whom they rely for financial advice, according to Financial Freedom, which says it leads the industry’s top reverse loan originator. Financial Freedom reported annual reverse loan volume of $1.6 billion, giving it a reported total market share of 55%.

Lender Lead said it is able to link thousands of prospective borrowers to HUD-approved reverse lenders through its Senior Lending program, which reportedly airs celebrity-endorsed TV commercials to educate seniors on reverse loans. Through the program, it is also able to gather daily research on senior lifestyle, attitudes and finances by surveying callers who inquire about the benefits of reverse loans.

“Our proprietary information paints an accurate picture of the life circumstances, challenges, hopes and dreams of today’s seniors,” Peskin said. “This information is a powerful selling tool for our correspondent lenders.”

Meanwhile, GoApply.com targets efforts at gathering prospects for subprime lenders. According to a recent announcement, the California-based leads company is providing an outline of steps consumers can follow to improve their credit score, by advising what they can do to repair their credit and pay down debt to improve their overall financial situation.

“Consumers don’t always know where to turn for help, nor do they know there are simple ways to get their credit back in order,” said GoApply.com executive Bill Baskin in the prepared statement. “It’s important to understand what to do and what not to do, and where to go when your credit report needs cleaning up.”

The subprime sector last year was white-hot last year with $608 billion in production jumping a whopping 55% from the prior year, according to subprime company executives at a recent related summit. While it is believed the notable growth may not continue, Doug Duncan, chief economist of the Mortgage Bankers Association, said the subprime market share will stay within the 12% to 15% range.

Rick Madlock, owner of Lenders Direct and a MortgageDaily.com advertiser, said his company targets three niche markets — subprime, FHA refinance and FHA first-time purchase. It educates prospective borrowers on the homebuying process prior to directing them to the appropriate lenders.

Twenty-five percent of the company’s leads come from its niche markets, Madlock added.


Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.email: s3celeste@aol.com

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION