Anyone Calling for Mortgage Protection Now?

[maniacagent]

I called for it a few years ago. Just wondered if anyone is calling for it now and if you also called for it in the past how the level of activity is now compared to then.

Basically, is it an active market right now. Thanks!

 

[SportsNut]

Basically, is it an active market right now. Thanks!

Has anyone been able to get a mortgage this year...?

Actually mtg originations are about 40-50% of what they were in 04-05 time frame. Since 90% of the mtg brokers who became unemployed have migrated into selling ins (we would have gotten 100% of them except for the other 10% are selling windows and siding now), the numbers for selling mtg protection as your main line of business aren't favorable. This of course doesn't mean that you can't, but it is a numbers game and the numbers are reduced substantially.

 

[maniacagent]

Has anyone been able to get a mortgage this year...?

Actually mtg originations are about 40-50% of what they were in 04-05 time frame. Since 90% of the mtg brokers who became unemployed have migrated into selling ins (we would have gotten 100% of them except for the other 10% are selling windows and siding now), the numbers for selling mtg protection as your main line of business aren't favorable. This of course doesn't mean that you can't, but it is a numbers game and the numbers are reduced substantially.

Well, in California here there are multiple locations where there is not enough property inventory it's been flying off the shelf so fast.

In addition I was told that whereas there were 500,000 insurance agents in 2005 there are fewer now. After a quick search I find Limra says the number of agents is down by 100,000 in the past few years.

 

[Cory]

I remember when the mortgage protection boom happened in 2005 - 2007. I know people that still sell it (spoke w/one yesterday), but obviously there are fewer leads because fewer new mortgages. You can still sell existing mortgages, but in my opinion it's better "received" by homeowners on new mortgages... worth it getting that data. Can be done well on existing mortgages with the right script.

Do you have a script?
What other products do you sell?

I always tried to lead in with a product(s) that was my best "foot-in-the-door" and then could always come back and cross-sell later.

 

[Tahoe Ray]

Well, in California here there are multiple locations where there is not enough property inventory it's been flying off the shelf so fast.

I'm visiting friends in San Fran this weekend....after talking real estate with them, I have to agree....

 

[TwiLight]

There has been a HUGE uptick in Mortgage Protection Sales since June.

The extension of the HARP II program on Jan 1 and fully available from banks in April allow Rate refinance above 100% of loan to market value (no longer a cap of 125%). The catch is that the lower rate must be combined with a lower payment term (15-22 year Vs the 25+ remaining on loan). Must also have good credit.

Getting a big return on the Direct Mail leads for the market. This is only a temporary thing, the program ends on 9/30/2013 and probably will not be renewed when Romney wins.

 

[Cory]

Rates are down to 3.4% which despite more strict lending requirements will kickstart some sales i.e. mortgage protection leads. I remember when mortgage rates were over 12%. Thanks for an update on the market. Everything is cyclical and wish all the agents waiting for the mortgage protection bandwagon the best.