This page is part of the Homebuyer's Fair
Getting borrower leads over the Internet is not virtual reality, it's reality. A handful of lenders are waking up to the marketing opportunities represented by millions of young high-tech consumers roaming around in cyberspace. by Arnold Kling
Who are these mysterious yet integral players? They are borrowers, of course.
The mortgage lending process always starts with a borrower. More than ever in today's leaner times, as mortgage bankers look for ways to speed loan processing and to cut costs, it makes sense to look for a network that links to the borrower. That is why some mortgage bankers have started to do business on the Internet, the worldwide network that links computers at businesses and universities and, increasingly, in people's homes.
Like the laptop and application-by-phone, marketing on line represents the next step forward in using technology to deliver faster, better, and cheaper service to customers.
Some lenders already have received leads through the Homebuyer's Fair(sm), an Internet service that works like a county fair, except that consumers visit by using their computers. The service was developed by ASK Real Estate Information Services, Silver Spring, Maryland, and Electric Press of Reston, Virginia. The major booths on the Homebuyer's Fair are: a homebuyer's information booth, which has a number of articles and pamphlets that explain various aspects of the home buying process; a booth listing houses for sale; and a mortgage booth, where borrowers can learn about choosing a mortgage, view displays from lenders, and send inquiries to lenders for rate and general information.
"The Information Superhighway is going to lower the costs associated with the loan," predicts James Noack, president of Monument Mortgage, one of the first lenders to display information on the Homebuyer's Fair. Monument and other lenders are trying to get a head start in what they expect will be an important technology in the latter half of this decade.
The Internet already has the potential to do more than just furnish leads. The technology is here to allow borrowers to qualify themselves for loans and fill out mortgage applications on line. However, lenders are not sure whether the consumer wants that capability. As an alternative, American Finance and Investment of Fairfax, Virginia, has an application form that can be printed out or downloaded to the borrower's computer. "The efficient delivery of the mortgage from the consumer to the secondary market is the way things are going," says Jack Rodgers, president of American Finance.
Contour Software, Inc., Campbell, California, developed a prequalification calculator to put on the Homebuyer's Fair. Contour President Scott Cooley describes it as a "very simple capability to give the borrower a general idea of what they could get for financing. We encourage them to go on to get the help of a professional."
Contour passes its leads on to its lender customers. "Developing a home page on the Internet is beyond the capability of most of our customers," explains Cooley. "We want to provide a way for our customers to access the millions of users on the Internet without their having go through R&D."
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