By Timothy M. Dwyer
Entitle Direct Group Inc.
that you have a good relationship
with a bank or investor whose appetite for jumbos keeps pace with
yours. Underwriting and downpay-ment requirements for this product
have become much tighter since securitization has diminished, and lenders likely will keep jumbo loans on
A bigger challenge may be standing out from your competition in marketing to and building relationships
with high-net-worth borrowers. these
more-sophisticated clients typically
understand the homebuying and financing processes better than first-time buyers. they often know what
they can afford, expect to be approved
for their loans, and want good advice
and service from trusted advisers. As
a mortgage broker, you may be only
one of the advisers to whom they listen. by advising clients on services
beyond their mortgage, you can earn
Jumbo mortgages and million- dollar-plus home sales appear to be making a comeback. to be
clear, no one is suggesting that the real
estate and credit crises are over, that
the secondary market is back in full
swing, or that the calendar has flipped
back to 2006. but slowly, the high end
of the market is showing signs of life.
this suggests it may be time for mortgage brokers to explore this lucrative
market niche once again.
this past summer, national rates
for 30-year jumbo loans were running about 50 basis points to 70 basis points over conforming, and some
large lenders were reporting a 30-per-
cent jump in jumbo-loan applications. Also, this past May, the National
Association of realtors reported
that sales of houses priced at $1 mil-
lion or greater jumped by 77 percent
Obviously, before you dive back into
the jumbo market, you must ensure
Plan for the Return of Jumbo Loans
Promoting periphery products such as title insurance may attract high-end borrowers
t CRL, we love the lending industry as
much as you do. Our company system
was created by a Loan Officer—President John
Cole—with Loan Officers like you in mind. We
want to help you reach the pinnacle of success
in your career. It starts with feeling good about
the way you are doing business and feeling good
about the company you align yourself with.
We believe in doing things the right way. CRL
was built on honesty and integrity, and there’s
nothing more important to us than treating
our Loan Officers and Branch Managers right.
We make sure your needs are taken care of and
that all of your commissions are paid on time
and in full. You work hard for your business.
We understand, and it’s our promise that you
get the respect and support that you deserve.
Unlike some other companies, that’s a promise
we’ll never break.
So, how do you get these borrowers’
attention and position yourself as a
trusted adviser? Show them something
they don’t know, and save them real
money on their closing costs.
For example, most borrowers use a
title company their real estate agent or
lender recommends. they don’t have
to. High-end clients, like homebuyers and refinancers in general, often
don’t realize they can shop for title insurance and settlement services and
save a great deal on the cost of title
For brokers who offer zero-closing-cost products, savings on title insurance can go directly to your bottom
line. the bigger the deal, the bigger
Also, paying less for title insurance
often appeals especially to high-net-worth individuals not only because
the dollar savings is larger but also
because they typically don’t want to
overpay for what they consider com-modity-like products.
Having a proactive discussion with
your clients about ways for them to
save will earn you their trust and secure
your role as a trusted adviser.
Start with the Web
Now in New Jersey
brokers can help their clients with their
comparative shopping. As with most
products and services, title insurance
can be found on the Internet — a good
starting point for price comparisons.
clients can search for title insurance
or visit a Web site designed to simplify
traditional title-insurance Web sites
also are an option, although many are
not as easy to use as they could be
when it comes to generating a quote
and populating that information into
the good-faith estimate.
If you tell your clients about how to
save on title insurance, expect to get
questions from either them or their fi-
nancial adviser, who may not fully un-
derstand how title insurance works.
Some widely held misconceptions
include the following: All title rates
and premiums are the same and dic-
tated by the state; you have no choice
when it comes to selecting your clos-
ing agent; and direct-to-consumer
title rates do not comply with the real
Estate Settlement Procedures Act.
the reality is that competition is
alive and kicking in title insurance.
Knowledgeable purchasers can read-
ily benefit from lower rates, closing-
partner flexibility, and the knowledge
that they are saving money without
risking noncompliance or delaying
the closing process.
• Over 100 lenders in nationwide network
• Lead-generation system
• Flat fee per loan with no hidden costs
Spread the word
Marketing to current and prospective clients to let them know you offer
jumbo loans is essential. If you use direct mail, whether snail mail or e-mail,
you might want to test the theme that
you can deliver significant savings on
jumbos or high-end properties.
It also might make a good subject for
a bylined article if public relations is
part of your marketing plan. Look to real
estate magazines or blogs that take article submissions from local industry
experts. Depending on your agreement
with the publication, you may be able to
repurpose the article by sending copies
to your clients and prospects. the industry validation often will strengthen
your credentials with clients.
If your budget allows advertising, the
“jumbo savings on jumbo properties”
theme can help you get high-net-worth
purchasers’ attention. Look for special
sections in your daily newspaper or lifestyle magazines that focus on high-end
property sales and place your ad there.
Many local television stations also
feature weekend programs that showcase high-end homes and properties
for sale. these are opportunities for
advertising or sponsorship. If broadcast ads are out of your price range,
consider placing a banner ad on the
station’s Web site.
Also market your services to intermediaries, such as accountants, financial advisers or realtors. Direct mail,
advertising in local newsletters or attending local association meetings can
build your reputation and business. You
might differentiate yourself or your company by alerting potential referral partners to the savings available for their
clients who might be in the market for a
jumbo mortgage or high-end property.
these messages will certainly support your positioning as a knowledgeable adviser who works in the best
interest of clients. And that’s a good
reputation to have, regardless of the
size of the deal. •
• Bookkeeping and tax services
• Payment on time, every time
• Compliance and ethics-focused company
• W2 pay with ability to expense items pretax
• Coming Soon: Broker/Banker
(nondisclosure of YSP)
Proud to Be a Christian-Managed Company
John Cole, President
To learn more, call or visit us online:
Timothy M. Dwyer is cEO of Entitle Direct
Group Inc., parent company of Entitle
Insurance co. and ENtItLE DIrEct, the only
direct provider of title insurance and closing
services offering savings of 35 percent or
more in 34 states and Washington, D.c.
Entitle insurance policies are accepted by
major lenders, Fannie Mae, Freddie Mac and
the Federal Housing Administration. contact
email@example.com or (203) 724-1150,
or visit www.EntitleDirect.com/mortgage.
View this article and more