Your FSBO Marketing Program And
"The National Do Not Call Registry"
BATTLECALL GUEST EXPERT: Tom Domin, Mortgage Marketing
Toolkit
Many of you
have asked about operating your mortgage business without violating the new
National Do Not Call regulations. Specifically, can using the For Sale by Owner
(FSBO) Marketing Program in the Ultimate Mortgage Marketing Kit a violation of
this law?
Here's my
answer..."Be very careful."
First of all, you need to review the law. You can
do that at:
http://www.ftc.gov/bcp/conline/edcams/donotcall/index.html
Second, pay attention to current rulings and
interpretations regarding the Do Not Call Registry so that you can keep informed
and adjust your marketing if necessary.
It's my
opinion that once a FSBO advertises or posts their phone number on a sign...Loan
Officers and Mortgage Brokers can call them.
Let's preface this by
saying, I'm not a lawyer, nor do I want to give legal advice. This is solely my
opinion. You cannot call on FSBOs with the purpose of getting their mortgage on
the new home they are purchasing. If they are on the No Call list...you're in
violation of the law.
Here's why...
The Federal
Trade Commission has ruled that Realtors cannot use the opportunity to solicit
listings. Why? Probably because the Realtor is marketing a service that
(1) requires a contract, and (2) will
eventually cost the homeowner commission fees.
If we went
after the new mortgage initially, we would be doing the same unlawful thing the
Realtors might do. In our case we have a mortgage contract embedded in the loan
application and we will charge for our services using mortgage
fees.
Instead...the FSBO Marketing Program is free to our FSBOs. There's
no cost there. We're providing a program that is going to help them sell their
home faster, more efficiently, and at the right price, all for free!
That's your
initial thrust...the FSBO Kit...not a new Mortgage...that's why in my
opinion; you're operating within the law. Are you going to try for the
FSBOs new mortgage? Of course you are! You just won't go for it on the first
call or even the second call. Instead, dazzle them with what they will be
getting for free...establish the relationship...gain rapport...then go for the
new mortgage.
A
word about FSBO marketing...
If you're
not working with FSBOs...you're missing an opportunity to build and maintain a
continuous lead and referral machine. You are literally missing the boat.
Why?...
First, you can immediately become an expert with
your own niche. You can be the FSBO expert in your area.
Second, this is truly an inexpensive marketing
approach. Great for new folks in the business.
Third, and the whole purpose of this...you'll get
lots of free quality leads. The more FSBOs you have working...the more leads
that are generated each week.
Fourth, it's an easier marketing approach. It's
much less intimidating talking to a homeowner than it is talking to a Realtor,
and
Fifth, since some FSBOs give up and elect to list
their home with a Realtor...you now can refer that homeowner to a Realtor of
your choice...this also helps you build additional
relationships.
Every thing
you need to become a FSBO expert is available in the
FSBO Kit.
OK...one
last word on the No Call
Registry...
In May of
2005 The Federal Communications Commission (FCC) issued a forfeiture notice to
Dynasty Mortgage, LLC in the amount of $770,000 for 70 phone calls made by
Dynasty to 50 consumers who were listed on the Federal Do Not Call List.
According to the notice, Dynasty obtained the leads from a lead broker, who
claimed the leads were scrubbed (checked) prior to Dynasty's purchase of the
leads.
If you're
purchasing leads...you need to question your lead company and how they screen
their marketing.
On
the other hand...if you have a great FSBO Marketing Program...and, it's
available at a one time cost of only about three mortgage leads...why would you
even go that route and expose yourself to that potential liability?
I'll let you answer
that question...
About the Author:
Tom Domin has over twenty-five years of experience in sales and training in Real
Estate and as a Licensed Mortgage Broker. He is currently publisher of "Tom's
Mortgage Tips" a twice monthly Mortgage Newsletter for Mortgage Professionals.
You can sign-up by visiting
http://www.mortgagemarketingtoolkit.com
Got an opinion? We want to hear from you. Post your thoughts or comments here in our Mortgage Warrior Forum. Come join the conversation and say hello...onward mortgage warrior!
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