HARP Direct Mail Marketing has got Loan Originators Phones Ringing Off the Hook

May 11, 2012 at 9:32 PM

HARP Direct Mail has phones RINGING

Premier Advantage Marketing has seen some impressive response rates, but the HARP program has loan originators phones ringing off the hook.

As efforts are being made to recover the ravaged housing market, the consumers are looking who they can turn to and refinance his/her home. Administration officials including HUD Secretary Shaun Donovan are pressuring Congress to pass a law enabling the program to be used to help more homeowners.

“There’s a real urgency here because interest rates today are at the lowest level they have ever been,” Donovan testified Tuesday before the Senate Banking Committee. “But as the economy continues to improve, the expectations are this window of record low interest rates many not last for a long time”

Since, Fannie and Freddie are already stuck with the loss if the existing loan defaults, substituting lower-interest new mortgages actually reduces risk for everyone. The homeowners have more money each month, making them less likely to default. The housing market can make strides to return to a state of equilibrium, and the economy gets a lift when the consumers spend their extra cash.

Direct mail starts a dialogue with the client. The HARP loan may or may not be the loan product the consumer eventually signs with; however, it is what they are hearing in the news. When our clients send out mail it puts momentum in the sales transaction that wasn’t there before.

With the new rules loosening restrictions and doing away with the 125% cap, applications are coming across the loan originators desk faster than they can process them. Applications for these refinances rocketed from less than 5 percent of the mortgage market in December “to close to 25 percent and rising,” Nomura Securities analyst Brian Foran wrote in a recent report.