Industry News

Billboards, e-mails, radio spots crowd mortgage advertising field

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A mortgage broker in Las Vegas recently ran a call-center campaign to find out whether prospects had received the company's direct mail. The good news was that 70 percent of the people called said they had received the mailer. The bad news? "Problem is, we didn't send one out," said Michael Barron, chairman and CEO of the company, Consumer Direct of America. Advertising for mortgage services so pervasive that it has become clutter, Barron said. Those in the business say the clutter is a result of the mortgage boom triggered by low interest rates, the sense that more borrowers are shopping for mortgages directly rather than relying on a broker and the fact that more companies are entering the lending business. The clutter poses a challenge for companies that want their message to be heard. And some who would rather not advertise so aggressively do so because they believe the fierce competition forces their hand. Consider the e-mail messages that promise interest rates as low as 3.25 pe...