Origination News Feature Story

Mainstream Media Under Fire at NAMB/Southeast

By Brad Finkelstein

The mainstream media came under fire at a panel consisting of National Association of Mortgage Brokers president Marc Savitt and several state leaders at the NAMB/Southeast conference here.

Mr. Savitt said the industry needs to take its message right to the consumers about the state of the market, adding the mainstream media is concentrating on "gloom and doom." The media is not hearing that housing affordability is back and that rates are still low. Brokers need to tell consumers right now they have a "window of opportunity."

Sal Bernadas, president of the Louisiana Mortgage Lenders Association, said he wished the industry could get the same message out there that the Democratic Party is pushing, one of hope and change.

When speaking with the press, he said, Mr. Bernadas tries to give them hard data that show the media their headline is not true at all.

The president of the Georgia Association of Mortgage Brokers, Walter Moody, said brokers can supply all the facts they want, but the press will still print what they want because negativity sells.

To counteract this, he said, brokers need to conduct a grassroots campaign with their past clients. "Your customers are your best advertisements," he said.

Brokers need to explain to their customers that the industry is in the fight of its life. "I can't make the press change what they are going to print," Mr. Moody said, so mortgage brokers need to make certain the people they do business with know who they are and what they do. His personal thought is that once the presidential election campaign is over, the industry won't get slammed in the press day after day. If the negativity is taken out of the equation, he continued, consumer confidence will come back.

Mr. Savitt said he agreed that this is a crisis of confidence with all the negative information out there people think the sky is falling.

Jeff Farnham, president of the Mississippi Association of Mortgage Brokers, said the industry needs to call their local media when they give out misinformation and provide them with the correct information. He added MAMB has reached out to the media to let them know the group is available for comment.

Mr. Savitt said brokers need to use customer testimonials in their advertising. Also they should join civic organizations in their hometown. Finally, brokers need to find media members who have an open mind to speak with.

When asked about the future of the industry, Mr. Farnham was bullish, noting mortgage brokers provide "a great service to our communities as well as to our wholesale partners." Mr. Moody added that "every industry goes through a cleansing period" and the mortgage industry is in one now. But those that make it through will be stronger.

When asked about marketing for her own business, Patrice Yamato, immediate past president of the Florida Association of Mortgage Brokers, said she has pulled her advertising from the Yellow Pages. She was getting a lot of calls, but they were from consumers she couldn't help, or from other marketers looking to sell their services.

Instead, she said, she has gone back to basics by calling on real estate agents.

For her reverse mortgage business, Ms. Yamato has done postcard campaigns.