Your FSBO Marketing Program and "the National Do Not Call Registry"

Many of you have asked about operating yourthey will be getting for free...establish the
mortgage business without violating the newrelationship...gain rapport...then go for the new
National Do Not Call regulations. Specifically, canmortgage.
using a For Sale by Owner (FSBO) MarketingA word about FSBO marketing...
Program be in violation of this law?If you're not working with FSBOs...you're missing
Here's my answer..."Be very careful."an opportunity to build and maintain a continuous
First of all, you need to review the law. You canlead and referral machine. You are literally missing
do that at the FTC website.the boat.
Second, pay attention to current rulings andWhy?...
interpretations regarding the Do Not Call RegistryFirst, you can immediately become an expert with
so that you can keep informed and adjust youryour own niche. You can be the FSBO expert in
marketing if necessary.your area.
It's my opinion that once a FSBO advertises orSecond, this is truly an inexpensive marketing
posts their phone number on a sign...Loan Officersapproach. Great for new folks in the business.
and Mortgage Brokers can call them.Third, and the whole purpose of this...you'll get lots
Let's preface this by saying, I'm not a lawyer, norof free quality leads. The more FSBOs you have
do I want to give legal advice. This is solely myworking...the more leads that are generated each
opinion. You cannot call on FSBOs with theweek.
purpose of getting their mortgage on the newFourth, it's an easier marketing approach. It's
home they are purchasing. If they are on the Nomuch less intimidating talking to a homeowner
Call list...you in violation of the law.than it is talking to a Realtor, and
Here's why...Fifth, since some FSBOs give up and elect to list
The Federal Trade Commission has ruled thattheir home with a Realtor...you now can refer that
Realtors cannot use the opportunity to solicithomeowner to a Realtor of your choice...this also
listings. Why? Probably because the Realtor ishelps you build additional relationships.
marketing a service that (1) requires a contract,OK...one last word on the No Call Registry...
and (2) will eventually cost the homeownerIn May of 2005 The Federal Communications
commission fees.Commission (FCC) issued a forfeiture notice to
If we went after the new mortgage initially, weDynasty Mortgage, LLC in the amount of
would be doing the same unlawful thing the$770,000 for 70 phone calls made by Dynasty to
Realtors might do. In our case we have a50 consumers who were listed on the Federal Do
mortgage contract embedded in the loanNot Call List. According to the notice, Dynasty
application and we will charge for our servicesobtained the leads from a lead broker, who
using mortgage fees.claimed the leads were scrubbed (checked) prior
Instead...the FSBO Marketing Program is free toto Dynasty's purchase of the leads.
our FSBOs. There's no cost there. We're providingIf you're purchasing leads...you need to question
a program that is going to help them sell theiryour lead company and how they screen their
home faster, more efficiently, and at the rightmarketing.
price, all for free!On the other hand...if you have a great FSBO
That's your initial thrust...the FSBO Kit...not a newMarketing Program...and, it's available at a one time
Mortgage...that's why in my opinion; you'recost of only about three mortgage leads...why
operating within the law. Are you going to try forwould you even go that route and expose
the FSBOs new mortgage? Of course you are!yourself to that potential liability?
You just won't go for it on the first call or evenI'll let you answer that question...
the second call. Instead, dazzle them with what