Improve Loan Modification Process with Lead Management Software

Loan modifications are this mortgage market's new refinance. With the rapid decline in home equity it can be the only product for homeowners. However, this is not the average refinance transaction for mortgage brokers, lenders, or even servicers. It requires a very different work flow and fulfillment process.

These unique mortgage workout programs are becoming enormously popular and necessary with emphasis from the US government and big banks advocating foreclosure prevention. These influences are making mortgage businesses consider enhanced loss mitigation strategies.

You can improve your chances of success using this simple 5 step lead management process:

Identification of Loan Modification Candidates

Granted, many of the loss mitigation and mortgage modification clients are already in trouble and seeking help. This is going to bring many of these potential clients to your front door. However, if you really want to help the bigger problem of foreclosure prevention you should identify at risk clients.

This process should include you digging into past clients and deals you have done. A methodical process is important to provide this service. Keep a close eye on clients with adjustable rate, interest-only, and option ARM mortgages. Customers and past clients will be relieved and thankful for notifications of their potential risk.

Contact and Notify Potential Modification Client

Now that you know who your at risk clients are, or possibly you have purchased loan modification leads, it is important to have a solid contact strategy.

Marketing automation, using email and direct mail can boost your customer inquiries and business. So many of these homeowners don't understand their options to stay in their homes. They generally fall into two categories: those in trouble and don't know how to find help in a loan modification or those who don't even know their home is at risk.

The best approach is to create a contact management campaign that smartly blends education and loan modification how-to messaging. Many times this campaign can be automated by your mortgage CRM or contact management software.

Assessment of Mortgage and Personal Finance

Once they are in your office or on the phone make sure you have an efficient worksheet to quickly calculate the customer's risk and opportunity with a loan modification. Again, this should be a very simple loan and finance worksheet connected or embedded in your lead management system.

Most likely, your first counseling session will be a shock to your client. They are now acutely aware of the risk to their home. Consequently, you are going to need to capture and track this assessment through a potentially extended cycle towards the loan workout process.

Follow-up and Pipeline Management

Because a loan workout is typically longer and more process intensive than a mortgage origination follow-up is critical. These workout programs require a significant amount of documentation and process points to actually deliver a client solution.

More reason than ever to introduce a lead management system into your modified refinance business. Your follow-up and pipeline management process is going to allow you to process and serve a lot more homeowners--making your business much more successful and profitable.

Lead Nurturing of Customers

Of course, not every one will say, "yes" or even qualify for a loan workout. That means you owe it to them to continue informing and educating them on their mortgage options. This is no longer a selling process, but rather an education one.

Loan modifications are certainly challenging for clients and providers, but a good lead management system can make the process much better for both.