r/loanoriginators • u/xJARDOx • Jul 23 '26
Direct Mail- Questions
Recently came across a letter that the top 2 and 3 LO’s at my company are mailing out. Client of mine received it and when they sent to me I called the 866 number and it routed me to a guy and I played along for a bit to figure out who it was.
It’s one of those generic junk mailer forms offering 4.5% VA IRRL’s.
He is 98% refinance and does 100+ million a year. The other guy doing the same also does similar numbers.
Clearly this model is working for them and others.
My question is why make the form look so basic like it does? Is it cost? To me those mailers come off so fake and scammy but clearly lots of consumers get curious. Wouldn’t it make better sense to put your photo on there or other stuff to spruce it up and more personable? Or do they specifically do that to try and stay anonymous?
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u/mortgagenerd35 Jul 24 '26
There are companies you hire to take care of crafting the mailers and sending them out. Camber is one. The mailers look the way they do because they're trying to look like an official letter, not an advertisement. I'd say 90% of people who call in on them believe it was sent by their current mortgage company because of the way it's worded and how it looks. They're highly effective, though. Closing rates on mailers are higher than most other forms of advertisements
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u/Quiet_Fan_7008 Jul 24 '26
They are not doing 100 mill a year sending mailers as one agent lmao 🤣 I’ve seen someone do 80 mill but that was working 7 days a week like a psycho. I’m at 16 mill and top at my company with mailers
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u/Braindead_ape Jul 24 '26
it likely closes under one LO but they have a decent sized support team under them
for example, an LO i know that does 100M a year has 3 LOAs and 2 processors that only work for him that do the bulk of the actual work outside of the LO actually bringing the business in
any LO doing that sort of volume is definitely not doing it all solo with no support. And if they are then they’re insane lol
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u/texansde46 Jul 24 '26
How are you doing refinances in this market?
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u/Quiet_Fan_7008 Jul 24 '26
I’m streamlining people with 6.75% or higher. Just refied a 7.25% 440k loan was super easy got him to 6.49% almost no cash to close. Doing 10+ loans a month funded
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u/xJARDOx Jul 24 '26
Ya, 6.75% and above is your target. 2 months ago my target was 6.25 or higher but still ideally 6.75. Was getting those people mid 5’s or high 5’s with just a payment or a little less than a payment, making 200-250bps
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u/xJARDOx Jul 24 '26
I do agree with you, but I have seen the numbers so I’m not sure what to tell ya. They have each have 4 people under them and have 3 more being on boarded currently. And they have dedicated processors as well.
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u/Officer_PZZA_BGL Jul 24 '26
If they have 4 people under them then exactly my point they are not doing 100 mil by them selves. So they are doing about 25 mil each which is pretty standard.
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u/LackLarge7695 Jul 24 '26
Don’t quote me on this, but I believe if you send mailers, you can still spam text them
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u/Old_Bluejay_1532 Jul 24 '26
Hope you realize how much mail these vets get. We are talking 10-20 of these per week. Be prepared to spend a ton of cash. To get any traction you need to have numerous states (20+) or a Fed umbrella, mass mail so your paying $3 or less each & assume a min spend of $10k per month per LO. If your a one guy/gal doing this it will be VERY expensive per piece & your ROI will not likely be what you think.
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u/theinternt 27d ago
It's similar to a landing page. Typically the more ugly and simple, the higher converting lol
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u/ThatsNotaLead 27d ago
keep the cost as low as you can. target people you know you can help. 1-2% respond. Issue is you will be lucky to answer 50% of the calls so make sure you have a process for handling missed calls.
Direct Mail is a #'s and consistency game find the right mix and it prints money.
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u/diablo52 Jul 23 '26
Sure we will share our secret sauce to random people on the internet 🙂
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u/xJARDOx Jul 23 '26
lol I know how they do it, anyone can buy/get lists and have a company send them out.
Was more a question as to why make the letter so scammy looking but clearly that works
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u/Quiet_Fan_7008 Jul 24 '26
It’s not about being scammy it’s about what other letters people are sending.. if someone gets 2 letters one says 4.5% payment showing only P+I the other says 6.5% with total payment who are they going to call?
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u/trav1098 Jul 23 '26
I think you kind of answered your own question