You can open your eyes now.  Contrary to what you’ve been hearing in the news, the mortgage industry is still here, and loans are still being done.  But being done by whom?

It’s been a long time coming and was clearly forecast by most, yet many originators are still confused by the “meltdown” effect – and wondering who’s left to buy their loans, and who’s left to sell them to?  Yes, the landscape has changed, the players have changed, the rules have changed – and you need to learn how to play the game in a completely New Market!

Perception

It’s not just that programs and lenders have changed, or that the sub-prime fallout has wiped out pipelines and your plans for a new BMW.  The borrowers’ entire PERCEPTION of our industry has changed!  People who had no problem with an option-ARM, 100 LTV’s and payments that changed by the hour – all of the sudden are rethinking their life-long goals, and how they finance them.

Thanks to the media, our industry has become predatory, greedy and spurned a complete Wall Street meltdown almost overnight.  This of course is not the reality, but as they taught us in Journalism 101 – when the myth becomes reality, print the myth!

So the first step in devising how to effectively connect to the “New Market” is to accept their perception as reality.  Don’t try and argue with them and defend what some idiot down the street did 18 months ago, just move on and solve the problem.  This is what Prospects want to hear from you.  Education and professional disaster management are the keys here.  Create marketing messages that are succinct in solving financial pressures (as in mortgage planning, foreclosure avoidance, debt management, etc.) and concentrate on educating (financial management, credit management, long-term wealth creation, etc.), and your message will have a much better chance of getting through.  Don’t focus on slick advertising bylines like zero closing costs, low interest rates (I’ll kill you myself!), 100% loans, or bad-credit loans – you’ll get tuned out faster than an off-key opera singer.  The market is fed-up with those types of messages, and even if you get the phone to ring, you won’t want that type of client.

Reality

The reality of the “new market” is that prospects are looking for four things: honesty, experience, value and convenience.  But if you can’t provide the first two, don’t bother trying the other two.  People want you to get straight to the point, not waste their time, and provide value and integrity.  Not that this concept is new, but it has now become a “visible priority” in the New Market.

Your market branding and personal marketing needs to take a more formal tone.  In this new reality, you need to be involved in your local business clubs, member of associations and the BBB, and tout your credentials and achievements.  Customer testimonials, especially online video testimonials will become deal clinchers.  Press coverage, working with community groups and housing centers will create market credibility, which has become more important than ever before.

The good news in this New Market reality, is that “price” has become much less of a factor in the clients’ decision-making process!  The new reality stresses the importance of trust and long-term relationships, and gives you the opportunity to capitalize if you follow the next critical step – applying the two forces!

Applying Perception and Reality

The key to successful marketing isn’t in your message – it’s in the prospects’ listening of that message.  To effectively apply your marketing message in the New Market, you need to get to the root of the Perception and the Reality.  Contact 10-15 of your past customers, and ask them to take a little survey.  You can also survey them online (such as with www.SurveyMonkey.com) which allows you to hit up more people, but your responses won’t be as genuine as when you’re on the phone with them.  Ask them about their impression of the current mortgage and real estate markets.  What do they know about interest rates, sub-prime loans, and values – and what are their personal concerns?  Just a few questions, and after a few phone calls, you’re new marketing messages will become crystal clear.

Applying your new-found marketing message to the Reality side is where the real fun – and profits begin.  Successful originators, brokers, and real estate agents will need to corner “ultra-niche” markets, and develop key “affiliate partnerships” that provide prospects and clients with real value and convenience.  Don’t think first-time homebuyers – think newlyweds, first-time mothers, college graduates, health professionals, teachers, and rescue workers.  Don’t think construction loans – think plumbers, architects, landscapers, moving companies and high-end electronics stores.  Find people and companies that can help you provide value to these small target markets, and you will own that niche.

Another expectation of the New Market is communication.  Business had been so good for so long, many of us forgot how to stay in touch with our core customers.  Excuses won’t work here.  Autoresponders, ezines, drip marketing campaigns, webinars and video messaging are “must have” tools for the New Market.  Today’s customer expects value-based communication designed for easy, convenient consumption on a regular basis.  Consider a video or audio newsletter posted on a blog or community site dedicated to your customers.  These along with podcasts, affiliate partner conference calls, and joint marketing events will be the communication forums of choice.

No, it’s not exactly business as usual, but business is still being done.  For those that want to thrive in the New Market, it’s time to take a new approach to some basic principles.  A fresh twist will insure that you get to play the game for a long time to come!

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