Here is just a small brief about the loan modification industry and exactly how the lead providers are coping up the demand.
The Loan Modification Industry - Till Jan 2008 ,it consisted mostly with loss mitigation specialists and real estate attorneys who have been providing these services for years.Suddenly during the early 2008 ,with the subprime crisis deepening a lot of mortgage brokers and loan officers have moved into this industry.This happenend primamrily because of the lesser number of loan originations and the rising foreclosures in United States.There were also other people who jumped in this band-wagon---- specially the debt settlement companies and the real estate professionals who saw this as a opporunitity of lifetime.
This was one of the major factor which saw surge in the demand for such leads.The other factor which had a multiplier effect on the first one was the tougher lending criteria by the top banking institutions.This led to lesser loan originations and more mortgage brokers closing shops and joining the loan modification band wagon.
To explain the above let me show you a simple example - : Lets suppose we had a total 1000 mortgage brokers in US in Dec 2007 and 100 Loss Mitigation Specialists.
Assuming a Single Loss Mitigation Specialists consumes around 120 leads a month ,the demand in the month of december would have been 120*100= 12000 leads per month.
Now as per mortgage industry statistics every month from January 2008 around 15% of mortgage brokers have closed their shops and assuming 20%(conservative figure) of them get into loan modification it would mean every month we have increased demand .from our above assumption it would mean
In Month of january - 20% of (15% of 1000 )= 30 more loan modification professionals
In month of feb - 20% of (15% of 850) = 25 more loan modification professionals
So in 2 months we have a increased demand of around 30*120+25*120=3600+3000 = 6600 leads
So in the month of march we would have required 18660 leads per month minimum plus the increased demand for the month of march.Or in other words we have the loan modification industry which is growing at a rate of around 55% per month.
So how exactly is the loan modification leads industry coping up with the demand.
Well its a bad scenario here - the supply of loan modification leads are still very low.A lot of the major players of the mortgage lead industry havent yet opened there portfolio for loan modification leads.We dont have either lendingtree or leadpoint providing loan modification leads.Some of the major players in loan modification industry right now are Bestraterefferals ,Mkscope.com,Bigmortgageleads(wisdom group),Mortgage Leads Network ,1003 leads and current inclusion of companies like Leadbull and eleadz.
We also do have companies like Direct Contact Marketing Group and icreditleads but these companies are more into supplying mailing and telemarketing lists than providing leads.
I have myself spoken to Ted from Mortgage Leads Network and Todd from 1003 Leads and there current production ranges from 100-150 leads a day or approx 3000 leads a month.My own company mkscope.com generates around 75-100 leads per day and companies like leadbull,bestraterefferals and bigmortgageleads say they generate around 100 leads a day.So we have a total production per day ranging 500-600 leads per day or 15000 a month or 180000 a year.
According to the recent research data -we have around 2 million people signed up in foreclosures or who have got a notice of defaults and its expected to rise upto 5 million by mid 2009.So its a miniscule percantge of the total prospects whom all top companies are generating currently.This is still a very open market and it would really do a lot of distressed homeowners a great favor if more and more companies focus on loan modification.
I would invite valuable comments from other bloggers as to how we can increase production and as to how we can share knowledge to make "Loan Modification Leads" a very profitable industry niche.
Mkscope provides Live Transfer Loan Modification Leads for loss mitigation specialists and loan modification companies.
contact me for more lead generation advice sudip@mkscope.com or call 3233722912
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