Are you excited about the potential behind HARP 2.0? I know I am! It finally gives many of our fellow Americans the chance to refinance their underwater loans and take advantage of currently low rates. Ever since the news was released last year, I have been looking forward to 2012.
Fannie Mae and Freddie Mac have not released projections on the number of Americans who will qualify under the new HARP 2.0 guidelines. However, a quick count through the bureaus shows that there are roughly eight million Americans that may benefit for HARP 2.0. Although this is a rough estimate, the thought of eight million refinance loans being processed in the next two years shows a sustainable model for any broker or loan officer looking for HARP leads.
Early beta test numbers have shown above average responses from current HARP direct mail marketing campaigns. It makes sense too … let’s think about who we are targeting and why responses are expected to be higher than your traditional refinance marketing campaign.
We are targeting a Fannie Mae or Freddie Mac homeowner who is upside down, but still making their mortgage payments on time. Many of these homeowners tried to refinance recently, but were denied due to owing more than what their home is worth. They have seen their neighbors and friends struggle to make their payments only to later modify their loan or short sale the property. At this point, the mindset of most of these homeowners is, “Why can’t I get help when I am making my payments on time?” On top of that, very few of these homeowners have seen a mortgage offer of any kind in quite some time.
All of this combined equals high responses from all types of HARP marketing. The key is marketing to right list of homeowners. In short, you want to target current Fannie Mae or Freddie Mac loan holders who are upside down on their mortgage and have not been late on their payments. If you focus on this group of homeowners, you will be talking to the people who have been saying, “Why can’t I get help when I am making my payments on time?” You now have the answer with HARP 2.0. The only question now is: How are you going to take advantage of it?
Raymond Bartreau is chief executive officer of Best Rate Referrals, and founder and chief executive officer of harpmortgageleads.com. He may be reached by phone at (800) 811-1402 or e-mail
[email protected].
