“When it comes to mortgages,” Delpetre says, “online lead generation is certainly a piece of the puzzle, but it pales in comparison to the power of referrals and existing relationships.”

The benchmarking data comes from MortgageCX, a Stratmor Service Group. It is not available publically; rather, it is shared only with Stratmor’s clients and industry associates. There is no written report.

Breaking down the numbers, roughly 45% of borrowers found their lenders through referrals, either from their real estate agents or a member of their families, and 28% already had a relationship with either their lender or their originator.

A smaller dataset from Bramlett Partners, an Austin realty firm, shows similar results and how the importance of personal relationships translate into the brokerage business. While not necessarily representative of the entire industry, the company found that 61% of the deals closed by 15 agents came from their sphere of influence.

Again, farming, social media and open houses pale to referrals and existing relationships. In the real estate and mortgage businesses, comments Delpetre, “it’s not just about what you know, it’s who you know...Online leads are exciting, but the data reinforces how absolutely critical relationships are in the real estate industry.”

Fannie Mae’s Title Acceptance Program

That title insurance is a significant portion of what it costs borrowers to close on a mortgage is not debatable. What is arguable is who writes the title policies.

The American Land Title Association maintains that consumers, lenders and tax payers would be subject to greater financial risk if anyone other than title pros write policies. It also asserts that Fannie Mae’s pilot program to underwrite title coverage promises false savings.

Currently, the test involves only refinancings with loan-value ratios of less than 80%. But a new academic study from George Mason University’s Antonin Scalia Law School says that if the Title Acceptance Program were to be made permanent, consumers would save $96 million annually.

These savings derive from direct cost reductions, competitive pressure on incumbent pricing, and increased consumer adoption of lower-cost alternatives. And the study’s authors — Andrew Rodrigo Nigrinis, an economist at Legal Economics, and GMU law professor Todd Zywicki  — project that total savings could reach as much as $2.19 billion over time.

“By fostering innovation, enhancing transparency and reducing costs,” Nigrinis and Zywicki write, “the Title Acceptance Program represents a significant step toward addressing housing affordability and advancing competition in the title insurance industry.”

They call it “a true demonstration of its usefulness in addressing high housing costs,” saying that in face of competition, title insurers would likely reduce their prices “by roughly 10%.” 

The authors also found that preliminary evidence suggests that automated underwriting maintains loss rates comparable to traditional methods, ensuring financial risk remains low. And they say AU provides particular benefits to underserved populations, including low-income, rural, and minority consumers.

They conclude: “In sum, our analysis shows Fannie Mae’s title insurance pilot will have a profound and long-lasting impact on closing costs, potentially eliminating a barrier that prevents many homeowners from pursuing a refinance or other financially beneficial transaction. It is clear this program should continue and expand.”

Title Fraud

Loan officers and real estate agents need to make doubly sure their first-time home buyer clients are aware of the possibility that someone will try to steal their downpayment funds. According to the latest data from CertifID, rookies are three times more likely to fall victim to title fraud than experienced borrowers.

The 2025 State of Wire Fraud report says one in every four buyers are targeted by crooks and one in 20 become victims. First-timers are the most vulnerable. But those 55 and older are twice as likely to be unaware of the potential risks as those 44 years or less.

The report also found that rookies look most often to their real estate agents to protect them against fraud, while more experienced consumers rely most often on their title companies or attorneys.

For one thing, you are easy to find. All agents have to do is comb their local listing services for properties that haven’t re-upped. And they can target you at any time, from just after you de-list to years later.

Not just on your time, either, but theirs as well. “It is an easy faucet to turn on and off,” the above quoted trainer said in an on-line post. “When you need business, turn it on. When you have too much, turn it off.”

Sometimes, of course, sellers have had enough for a while and won’t want to put their houses back on the market. But that won’t stop some agents. Whether it be snail mail, e-mail, the phone, in person, or a combination of these tactics, they’ll be trying to connect to show you why it will be different with them the next time around.

Trigger Leads

Buyers, meanwhile, should expect to be inundated with emails, texts, and phone solicitations after they’ve already applied for a mortgage. So it would be wise for lenders to advise their clients that the onslaught is coming.

Your competitors regularly purchase your information from the credit agencies your lender uses to run your credit report and score. And then they use that information to troll for leads. Maybe you do the same.

The practice is known as “trigger leads,” because your application triggers a barrage of rival offers. It is frowned upon by many in the mortgage community, and legislation to put an end to it almost made it into law at the end of the last Congress. But supporters have vowed to keep fighting.

“This must stop,” says  Bob Broeksmit, president of the Mortgage Bankers Association, which has protecting consumers from unwanted trigger leads as a top priority. Not only does the practice sometimes cause emotional strain, he says, but also it is sometimes fraudulent. Worse, perhaps, it also serves to undermine the trust borrowers place in their loan officers and brokers.

“The mortgage industry depends on referrals and repeat business, which we have always enjoyed,” says a Mississippi lender. “This is nearly a bygone notion thanks to trigger leads.”

Added an Oregon colleague: “I pride myself in taking great care of my customers. Trigger leads are affecting my borrowers and, therefore, my reputation.”