Industry Survey Reveals Slowdown in Mortgage Industry

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A recent survey conducted by BNTouch Mortgage CRM reveals that this spring has turned out to be much slower for loan officers than anticipated earlier in the year. In response, loan officers are changing their business and marketing models to remain competitive in a contracting environment.

BNTouch Mortgage, a leading CRM and marketing solutions provider for mortgage originators released its quarterly survey results showing decline among originators across the nation. BNTouch conducts these surveys regularly to track the confidence levels and marketing trends among loan officers.

“The latest survey is interesting because it shows that loan originators are doing as well as they believed they would at the beginning of the year,” said Mark Vukadinovich the company’s Director of Marketing. “In January, 75% of the originators polled were optimistic about 2006 and believed that they would do a greater volume of loans than they did in 2005.” The latest survey results paint a different picture for 2006 with over 60% of the respondents stating that business in 2006 has been slow and over 50% of the respondents reported that their businesses were either losing personnel or staying the same.

When asked if this confirms speculations of a housing bubble, Dan Itkis, the CEO of BNTouch responded: “I think we’re seeing the market contraction separating less experienced loan officers from the seasoned professionals who have been through this sort of thing before, and forcing those without a good adaptable marketing plan to suffer the consequences. While there are number of great expanding opportunities out there for ARM refinances, Reverse Mortgages and new 50 year loans, loan originators have to be nimble enough in their marketing and execution efforts to adapt to the changing marketplace.”

In response to a slower than expected start to the year, the survey indicates that loan originators are turning back to traditional marketing strategies to stay competitive. Of those who responded to the survey, over 60% reported that they were focusing their marketing budgets on direct mail and referral marketing as opposed to on-line marketing channels such as purchasing internet leads. “From a marketing perspective, the survey results make sense,” commented Vukadinovich. “Over the past year, we’ve received a lot of complaints from our customers about the declining quality of internet leads, and this is not surprising if you look at the advertising tactics these companies use to get leads. They advertise loan programs and rates that are simply unrealistic in today’s rising rate market.”

When asked how the change in the market will affect vendors such as BNTouch, Itkis responded: “This may affect some vendors, but as a CRM provider, it does not affect us because our clients are those who realize that they have to maximize the value of all their business relationships to stay competitive and that’s exactly what BNTouch allows them to do.”


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Mark Vukadinovich
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