For decades, mortgage companies have worked with real estate brokerages to drive new mortgages. The value proposition to real estate brokerages was usually pretty simple.
An agreement would typically be drawn up, and the mortgage company would pay the brokerage monthly to carry out these marketing activities. However, instead of marketing themselves to the actual consumer, most mortgage companies were in effect marketing themselves to the broker’s agents in the hope of obtaining more referrals.
This caused the perception, and in some cases the reality, those agents were steering consumers to the mortgage company without the consumer understanding why. The consumer was generally never aware of the monetary exchange between the mortgage company and brokerage.
Why is it different now? The CFPB has taken a strong position on the regulatory compliance risks associated with mortgage companies giving dollars directly to a real estate firm.
Why everyone can win
Instead of spending their marketing dollars on things like signage or a desk in the corner of a broker’s office, mortgage companies are now going deeper. Much deeper, in fact.
They are taking the loan officer and the real estate agent along with their respective brands to focus on targeted, multi-channel marketing in the communities they serve.
No mysterious relationships, just the brands being presented with their respective value propositions, trying to win the consumer's attention. Simple and transparent marketing in hopes of fairly acquiring a customer.
In contrast to a monetary exchange between the mortgage company and brokerage, this type of marketing makes the message clearer to consumers:
Here are two professionals that work together. One wants to sell me a house, and one wants to give me a loan.
In many cases, the co-marketers are active in their targeted communities with charities and sponsors, which further strengthens the consumer’s connection and builds trust with the brands.
That brand recognition and trust is deepened when co-marketing is deployed across multiple channels.
It’s much more powerful when the consumer is noticing the co-marketing across web, print, social media, and their local community, opposed to a single marketing piece used in only one channel.