How to Generate Qualified Subprime Mortgage Leads Per Day

There are several benefits to focusing on subprime mortgage leads. One good reason for generating subprime mortgage leads is that the borrowers are less likely to shop your offer. Also, the commissions on subprime mortgage loans can be quite lucrative.



Ive found that one of the best ways to generate subprime mortgage leads is by direct mail.



So lets look at the steps involved in putting together a profitable direct mail campaign to generate subprime mortgage leads.





Prospect List



There are two sources I recommend for obtaining your mailing lists list companies and credit agencies.



Here are two sample criteria to request from list companies in order to target subprime borrowers:



1) Get a list of home owners who have just filed a chapter 13 bankruptcy. Do a cash out refinance and pay off their chapter 13 bankruptcy.





2) Get a list of people who originated a loan with a subprime lender at least 2 to 5 years ago. Their pre payment penalty will be expired and they will be ready to refinance.



Here are two list ideas when working with a credit agency to obtain your subprime mortgage lead mailing list:



1) Find homeowners who need help with their finances. Get a list of homeowners who are currently 30 days late on their first mortgage loan. Or, get a list of home owners who have a certain number of consumer lates 30, 60, or 90 in the past 6 to 12 months.



2) Select borrowers with a low credit score. You select the credit score range based on your loan programs.



Combine these with other criteria to better target your prospects. Here are two more list criteria ideas:



1) Homeowners with $15K to $50K outstanding revolving debt

2) Properties that have an LTV of 80% or less



Mail Piece



Here are a few important basics youll need to incorporate into your mail piece:



Personalized content



* Give sample payments.

* Tell them how much money the new loan will save then monthly and over the next 5 years.



Tell them about your unique selling propositions (USPs)



* 1% mortgage loan options

* No closing cost options

* No payment for 2 months

* Are they already approved? If so, let them know in the letter



Be sure to comply with the state banking regulations in your area. Include the following in your mail piece:



* Equal housing lender logo

* State license number

* Disclose APRs





Share some personal information about yourself under your signature



Your title

Years in the mortgage business

Awards youve received

Degrees or certifications youve earned

Hobbies

Interests



Here are examples:



Your Signature



Your Name



Senior Mortgage Planner

10 Years Mortgage Experience

Licensed Financial Planner

Married with 3 children

Single mother of two

Youth basketball coach



To get a complementary refinance letter that has produced more than $2,500,000 in mortgage commissions over the last 12 months visit:



http://www.Mortgage-Leads-Generator.com/a/refiletter.htm



Use Split Testing to Improve Your Conversion Rates



Now that you have a list of prospects and a mail piece, its time to mail. The secret to direct mail success is testing. If you test different elements of your direct mail campaign, you will find ways to increase conversion rates. Over time, you will have a mail campaign that will generate huge returns.



How to conduct Split Testing



Instruct your printer to separate your list into 3 groups:



1) Group 1 will be 80% of your list

2) Group 2 will be 10% of your list

3) And group 3 will consist of the last 10% of your list

4) Make sure the groups are randomly selected



Next



1) Mail your original letter to group 1

2) Make ONE very small change to the original letter and mail it to group 2

3) Then, make another very small change to the original letter and mail it to group 3

4) Track your results and see which version of the letter had the highest number of calls, applications, loans originated and loans funded.

5) Make the winner your original letter and start all over again



Do you see what you have just done? Its called split testing. If you do this consistently, you can continue to increase your conversion rate, get more leads, fund more loans and make more money!



Here are some ideas for changes:



* Use a website address instead of a phone number

* Use a website address with a phone number

* Add a heading

* Change one paragraph.

* Experiment with the PS

* Offer a coupon or something for free (appraisal, processing, etc)

* Add Red Headlines to your letter

* Use different envelopes

* Talk about different and unique USPs



Be sure to only make one small change at a time. If you make massive changes you wont know what specific change affected your conversion rate.



Dont underestimate the power of this testing. If you mail 2,500 letters a week, a 1% increase in response will give you an extra 25 calls per week. Thats an extra 100 calls per month. At a measly 10% conversion rate, thats an extra 10 loans per month.



That could easily equate to an extra $50,000 to $90,000 in commissions every month!



I am confident that a strong direct mail campaign will help you generate more subprime mortgage leads. Try these tips and youll be amazed at your results!



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