Promote to mortgage Prospects who need help getting "mortgage ready". Then, direct them to the right help and keep in touch.

1) Find a customer relationship management (CRM) that works with your mortgage loan operating system (LOS) to help you keep track of “not yet mortgage ready” Prospects.

There are CRMs that connect to most loan originator LOS systems. Most are set up beautifully to stay in contact with past purchasers, but many CRMs lack the same ease of the process to follow-up with Prospects who are delayed on the front end from purchasing as they “get mortgage ready”. Cultivating Prospects who are working towards a purchase and keeping in touch with them and their HUD counselor until the client is ready to purchase a home can lead to a new avenue of business for loan originators. 

• How a good CRM can help. CRM's can be set up to track where and who you refer prospective clients to that need help with credit, down payment assistance and more. Finding a CRM that allows the best interaction with your LOS to stay in touch and track the Prospect client's progress is key.

• If your LOS does not have a good follow-up CRM style system for Prospects, try customizing your own. This can be done in the Calyx LOS by customizing a Template and Report. 

2) Find HUD Housing Counseling Agencies (HCA). Refer Prospects for help needed.

When loan originators try to keep clients on a mortgage track themselves, attention to detail usually wanes when business picks up. 

• What HCA services can provide. Look for HUD agencies that can help with specific needs that your prospective client has. HUD approved credit counselors can work with clients who need credit issues handled, credit built, and get payment arrangement made for student loans. Most HUD Housing Counseling Agencies (HCA) also provide help with down payment assistance (DPA) for city and county programs. HCA's can also assist clients with before and after home purchase services like rental help and post-home purchase help like Foreclosure Prevention and loan modifications. HCA services are sometimes free but are most often provided on a sliding scale income basis.

• How mortgage loan originators can utilize HCA services. Check out which HCAs are in your area and what services they provide. Some HCAs provide services over a wider area and do so remotely. Create a relationship and know how to refer clients. HUD housing and credit counselors can follow clients until issues are resolved. Stay in touch with the HCA counselor on the progress of your client as they become "mortgage ready". This is where the CRM is beneficial. And if your client is getting DPA, the HUD housing counseling agency can often provide the education and certificate needed.

3) Embrace marketing tools that connect with Prospects as well as past clients. 

Most of us have marketing tools to keep in touch with clients through the mortgage loan process and after the purchase. Fewer marketing tools are available to keep track of "not mortgage ready" Prospects, and marketing to these clients is often a second thought.

• Retool Marketing for Prospects. 
• Make ads that promote that you can connect clients with help for credit, DPA and more. 
• Keep Prospects in separate database and group as 1) credit, 2) DPA and 3) other.
• Make short ads that encourage those already getting "mortgage ready" and invite others that want to do the same.

• Use Marketing but re-direct to Prospects.
• Most of us have marketing available for free from mortgage wholesalers or our own lending institution to help sell a loan product. This marketing can be redirected to Prospects as they get "mortgage ready". Retool marketing to target prospective purchasers and add that you know about services that can help. Upload a separate database of Prospects and run ads that highlight success stories with credit, DPA, etc.

• Promote that you can refer clients for services they need! 
• Promote that you work with agencies that can help assist clients! Promote those agencies. They are doing the work to get your Prospect "mortgage ready"! 
• Don‘t disregard clients because you don't know where to send them. Investigate the HUD.gov national counselor list that shows services offered by each HCA. Make ads like "Did you know you can get help with....?" 
• You may be surprised who calls you. though ads are geared to getting clients, real estate agents are also interested in talking with MLO's who can assist clients to get "mortgage ready"!

4) Most needed help for Prospects is with credit!

Good credit is the foundation block for purchasing a home and provides the greatest selection of programs, best interest rate and lowest mortgage insurance when purchasing a home. Get help with improving credit from HUD approved credit counselors for short and long term issues. 

• There are credit tools for loan originators! Credit reporting agencies can provide tools for loan originators to assist clients with credit such as Wayfinder and What If Simulator. And if you have a credit reporting agency that provides the Meridian Link platform, learn how to use this tool that allows you to see detailed payment history on each creditor.

5) Learn about new mortgage products!

There are more Affordable Housing programs available at present that are income driven and for 1st time homebuyers (haven’t owned home in last 3 years) than ever before for FHA, VA, USDA and conventional mortgages!

• Conventional products: Conventional loan private mortgage insurance (PMI) premiums are less cost with lower rates for better credit score clients. Conventional also has programs with specific income criteria for 97% financing and 95% financing on multi-family units.

• Other mortgage types and down payment assistance (DPA). Up to 105% combined loan to value (CLTV) with down payment assistance (DPA) is available for FHA and for specific Conventional products that meet criteria. DPA is available for FHA/VA/USDA as well as conventional loans, and wholesale DPA lenders always have funds available.

This will take some work on the loan originators part and you will need to learn new details about programs along the way. But laying the groundwork for incoming new business is one of the best tools a loan originator can have in this ever-changing mortgage market. Stay tuned.

For more loan originator, realtor and client help to get “mortgage ready”, go to our Partner Resources Page.