E-mail Marketing for Mortgage Loan Originators: How to Build Relationships and Generate More Business

Passing the SAFE Mortgage Loan Originator Test and obtaining an MLO license are major accomplishments — but licensing alone does not create a steady pipeline of borrowers and referral partners.

Mortgage loan originators must also learn how to remain visible, establish credibility, nurture relationships, and give people a reason to contact them when a financing need arises.  E-mail marketing can help accomplish all four objectives.

Unlike social-media posts, which can quickly disappear from view, e-mail gives an MLO a direct way to communicate with prospective borrowers, former clients, real estate agents, builders, financial professionals, and other referral sources.  When used properly, it can turn occasional contacts into long-term professional relationships.

Why E-mail Marketing Matters for Mortgage Loan Originators

Most consumers do not need a mortgage at the exact moment when they first meet a loan originator.  They may be several months away from purchasing a home, waiting for interest rates to change, improving their credit, accumulating funds for a down payment, or simply exploring their options.

If the MLO does not remain in contact, that prospective borrower may eventually obtain financing from someone else.

E-mail marketing allows mortgage professionals to remain visible without having to contact every person individually.  A helpful e-mail, delivered periodically, can remind recipients who the MLO is, demonstrate the MLO’s knowledge, and make it easier for someone to begin a conversation when the time is right.

E-mail can also support relationships with real estate professionals and other referral partners.  An MLO who consistently provides accurate, useful information can become a trusted resource rather than merely another person asking for referrals.

Begin With a Permission-Based E-mail List

An effective mortgage e-mail campaign begins with the right audience.

Mortgage loan officers should concentrate on building a list of people who have requested information, agreed to receive communications, previously conducted business with the MLO, and/or otherwise have an appropriate reason to hear from the sender.

Possible sources include:

• Prospective borrowers who complete an inquiry or contact form;
• People who request a mortgage guide, checklist, or educational resource;
• Former clients who consent to continued communication;
• Attendees at homebuyer seminars or educational events;
• Real estate agents and other professionals who request updates; and
• People who subscribe through the MLO’s website or social-media channels.

Purchasing a large, unfamiliar e-mail list may appear to offer a shortcut, but it can produce poor engagement, spam complaints, damaged trust, and deliverability problems.  A smaller list of people who genuinely want the information is generally more valuable than a large list of disengaged recipients.

Segment the Audience Before Sending E-mails

Not everyone on an MLO’s e-mail list needs the same information.

A first-time homebuyer has different questions than would a homeowner considering a refinance.  A real estate agent is likely to value different content than from a prospective borrower.  Sending the same message to everyone can make otherwise useful e-mails feel irrelevant.

An MLO might organize contacts into segments such as:

• First-time homebuyers;
• Repeat buyers;
• Homeowners considering refinancing;
• Real estate investors;
• Former clients;
• Real estate agents and referral partners; and
• Prospective MLOs or newly-licensed originators.

Segmentation makes it possible to deliver information that corresponds with each recipient’s interests and stage in the mortgage process.  It can also help the MLO write more specific subject lines and calls to action (CTAs).

Focus on Education Before Promotion

People rarely subscribe to an e-mail list because they want a continuous stream of advertisements.  They remain subscribed when the information is useful.

Mortgage loan originators have many opportunities to educate their audiences.  Topics might include:

• What borrowers should expect during the mortgage process;
• Documents that may be required when applying for a mortgage;
• The importance of following your MLO’s directions;
• The difference between prequalification and preapproval;
• Factors that may affect mortgage eligibility;
• Common first-time homebuyer misunderstandings;
• Questions borrowers should ask before selecting a loan program;
• Explanations of mortgage terminology;
• Steps consumers can take before speaking with an MLO; and
• General updates that may affect buyers or homeowners.

Educational content can establish the MLO as a knowledgeable professional.  It also gives recipients information they may save, forward, or share with someone who needs mortgage assistance.

Promotional e-mails can still be included, but they should be supported by a consistent record of providing value.

Write Subject Lines That Create Interest Without Misleading People

The subject line determines whether many recipients will open an e-mail.  It should be specific enough to communicate value without resorting to exaggerated promises.

Examples include:

• Five Documents to Gather Before Applying for a Mortgage;
• Buying Your First Home?  Start With These Three Steps;
• Prequalification and Preapproval Are Not the Same;
• What Should You Avoid During the Mortgage Process?; and
• Questions to Ask Before Choosing a Mortgage Program.

Subject lines should accurately reflect the e-mail’s contents.  Deceptive subject lines are not only damaging to credibility; they are also prohibited under the CAN-SPAM Act.

Make Every E-mail Easy to Read

Mortgage subjects can become complicated very quickly.  An effective marketing e-mail should simplify the subject rather than overwhelm the reader.

Use a clear headline, short paragraphs, descriptive subheadings, and enough white space to make the message easy to scan on a phone.  When appropriate, bullets can help organize documents, steps, questions, or common mistakes.

Each e-mail should generally address one primary subject.  Attempting to explain several unrelated topics in one message can dilute the e-mail’s purpose and cloud the desired next step.

Technical terminology should either be avoided or explained in plain language.  The objective is not to demonstrate how complicated mortgage lending can be or impress with fancy words.  The objective is to help the reader understand it.

Give Each E-mail One Clear Call to Action

After reading an e-mail, the recipient should know what to do next.

Depending on the message and audience, the call to action might invite the reader to:

• Schedule a consultation;
• Ask a mortgage question;
• Request a preapproval conversation;
• Download a homebuyer checklist;
• Register for an educational event;
• Read a related article;
• Reply directly to the e-mail; or
• Share the information with someone preparing to purchase a home.

The call to action should be clear and appropriate to the content.  An educational e-mail does not always require an aggressive sales pitch.  Sometimes a simple invitation to reply with questions is enough to begin a valuable conversation.

Create a Consistent E-mail Schedule

Consistency is more important than sending messages constantly.

A monthly or twice-monthly educational e-mail may be sufficient for many mortgage professionals.  Others may benefit from weekly communications if they can continue providing genuinely-useful information.

The appropriate frequency depends on the audience, the type of content, and how contacts joined the list.  MLOs should monitor open rates, clicks, replies, unsubscribes, spam complaints, appointments, and completed applications to determine whether the frequency and content are working.

A sustainable schedule is usually better than sending several e-mails in a short period and then disappearing for months.

Use Automated E-mail Sequences Carefully

Automation can help an MLO follow up consistently without composing every message manually.

For example, a prospective homebuyer who downloads a checklist might receive a short sequence containing:

1. The requested resource and an introduction;
2. An explanation of the initial mortgage consultation;
3. A list of commonly requested documents;
4. Answers to frequent first-time buyer questions; and
5. An invitation to schedule a conversation.

Former clients might receive periodic home-financing education, anniversary messages, or reminders that the MLO remains available to answer questions.

Automation should not make communication feel impersonal.  E-mails should sound as though they come from an accessible mortgage professional — not from an anonymous marketing system.

Protect Borrower Information

Mortgage professionals routinely handle sensitive personal and financial information.  Marketing e-mails should never request Social Security numbers, account information, tax documents, or other confidential records through unsecured e-mail.

Recipients should be directed to the company’s approved, secure systems whenever protected or sensitive information must be collected or transmitted.

MLOs should also follow their employer’s privacy, data-security, record-retention, advertising, and communication policies.

Follow E-mail and Mortgage-Advertising Requirements

Commercial e-mail is subject to the CAN-SPAM Act.  Among other requirements, marketing e-mails must use accurate sender information and subject lines, identify the message as an advertisement when required, provide a valid physical postal address, include a clear way to opt out, and honor eligible opt-out requests within ten (10) business days.  Responsibility cannot simply be transferred to the company sending e-mails on the advertiser’s behalf because, if a glitch occurs and the rules are not adhered to, the advertiser, as well as his or her company, can be held personally and professionally accountable.

Mortgage advertising must adhere to federal and state requirements.  For example, the Truth-in-Lending Act (Regulation Z) contains rules governing advertisements that state specific credit terms.  Any terms presented must be terms that are actually available, and certain statements can trigger additional required disclosures.

Mortgage companies and MLOs should have marketing materials reviewed through their organization’s compliance process before distribution.  This article provides general educational information and should not be interpreted as or considered to be legal or compliance advice.

Measure Results That Matter

Open rates can provide useful information, but an open does not necessarily produce business.  Mortgage professionals should also evaluate:

• Links clicked;
• Replies received;
• Consultation requests;
• Referral-partner conversations;
• Preapproval inquiries;
• Completed applications;
• Closed loans associated with the campaign; and
• Unsubscribes and spam complaints.

The goal is not merely to produce a high e-mail open rate.  The goal is to create useful professional relationships that eventually lead to conversations, referrals, and mortgage opportunities.

E-mail Marketing Begins With Credibility

Successful mortgage e-mail marketing depends on trust.  Before consumers or referral partners act on an MLO’s message, they must believe that the sender is knowledgeable, professional, honest, and capable of helping them.

That credibility begins well before the first marketing campaign.  It begins with learning the mortgage material, understanding the laws and concepts that govern the profession, preparing properly for the SAFE Exam, and continuing to develop after becoming licensed.

AxSellerated Development helps prospective mortgage loan originators build the:

• Knowledge;
• Understanding;
• Proficiency; and
• Strategy

needed to approach the SAFE Exam with confidence.

If you are preparing to enter the mortgage industry, explore AxSellerated Development’s SAFE Exam practice-exam programs and additional exam-preparation resources at SafeExamTraining.com.

AxSellerated Development
www.safeexamtraining.com
info@axsdevelopment.com
888-572-7739

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Frequently Asked Questions

1. How often should a mortgage loan originator send marketing e-mails?

Many MLOs begin with one or two useful e-mails per month.  A weekly schedule may work when the sender has enough valuably-relevant information to justify the additional frequency.  Engagement, unsubscribes, spam complaints, and actual inquiries should guide future adjustments.

2. What should mortgage loan originators write about in their e-mails?

Useful topics include the mortgage process, commonly requested documents, first-time homebuyer questions, mortgage terminology, prequalification versus preapproval, common borrower mistakes, and questions consumers should ask when exploring financing options.

3. Should an MLO buy an e-mail list?

Purchasing an unfamiliar list is generally a poor marketing strategy.  Recipients may not recognize the sender or want the messages, which can lead to weak engagement and spam complaints.  A permission-based list developed through genuine inquiries, subscriptions, clients, and professional relationships is usually more valuable.

4. Are mortgage marketing e-mails required to include an unsubscribe option?

Commercial marketing e-mails generally must provide a clear and conspicuous way for recipients to opt out of future messages.  The sender must also comply with the CAN-SPAM Act’s other requirements and honor qualifying opt-out requests within the required period.

5. Can e-mail marketing help a newly-licensed mortgage loan originator?

Yes.  E-mail can help a new MLO remain visible, educate prospective borrowers, develop referral relationships, and establish professional credibility.  It works best as part of a broader business-development strategy that also includes personal outreach, networking, social media, exceptional service, and ongoing mortgage education.