Here's a number that should change how you think about marketing: 98% of text messages are read within 3 minutes. Compare that to email's 20-25% open rate. SMS isn't a nice-to-have channel for loan officers — it's the most direct line to your borrowers, and most LOs aren't using it at all.
I get the hesitation. You don't want to be that person who sends annoying texts. You're worried about compliance. You don't know what to say. All valid concerns — and all solvable. Let's walk through the complete playbook.
Why SMS Works for Mortgage
Mortgage is a high-consideration, high-anxiety purchase. Borrowers have questions at random times — not during your business hours. They want quick answers, not a phone call they have to schedule. Text messaging meets them exactly where they are.
The numbers across our platform tell the story:
- SMS response rate: 45% (vs. 6% for email)
- Average response time from borrower: 90 seconds
- Lead-to-contact rate with SMS: 65% (vs. 30% with phone-only)
- Appointment booking rate: 3x higher when SMS is the first touch
This isn't theoretical. These are real metrics from loan officers using automated text as their speed-to-lead first touch.
The TCPA Reality Check
Before we go further: compliance matters. The Telephone Consumer Protection Act (TCPA) has teeth — fines of $500-$1,500 per unsolicited text. But compliance isn't as scary as most people make it:
TCPA Basics for Mortgage SMS
You need consent. If a lead filled out a form that includes SMS opt-in language, you have it. If a past client gave you their number during the loan process with appropriate disclosures, you have it. What you don't have: permission to text random numbers from a purchased list. Don't do that.
Most modern mortgage CRMs handle consent tracking automatically. When a lead comes in through a form with opt-in language, the system logs the consent, timestamps it, and gives you a clear record. This isn't the Wild West — it's just basic record-keeping.
What to Text (and What Not To)
Texts That Work
The Speed-to-Lead Text:
"Hey Sarah, it's Michael with Empower LO. Saw your inquiry about home financing — quick question: are you looking to buy in the next 60 days or just getting started? Happy to help either way."
The Check-In Text:
"Hi David — just checking in. Have you had a chance to connect with a realtor yet? I've got a couple great ones in that area if you want an intro."
The Value Text:
"Quick heads up — rates dropped to 5.5% this week. For the price range you mentioned, that's about $150/mo less than last month. Want me to run updated numbers?"
Texts That Don't Work
- The novel: Any text longer than 3 sentences. Keep it short.
- The hard sell: "APPLY NOW! Rates won't last! Call immediately!" This is how you get blocked.
- The generic blast: Sending the same message to 500 people. This isn't email — texts should feel one-to-one.
- The midnight text: Respect time zones. 9 AM - 8 PM, local time. Period.
Building an SMS Automation Sequence
SMS works best when it's integrated into your broader drip campaign strategy, not running as a separate channel. Here's how the best LOs structure it:
- Minute 1: Automated text immediately after lead submission (speed-to-lead)
- Hour 4: If no response, a second text with a different angle
- Day 2: Follow-up email (switch channels)
- Day 4: Text with a value add (rate info, tip, or question)
- Day 7: Email with educational content
- Day 10: "Still interested?" text — casual, no pressure
The key is alternating between SMS and email. Hitting someone on both channels within the same hour feels aggressive. Spacing it out across channels feels thorough.
A10DLC Registration: Don't Skip This
If you're sending business text messages in the US, you need A2P 10DLC registration. This is the carrier-level registration that identifies you as a legitimate business sender. Without it, your messages will increasingly get filtered or blocked by carriers.
The registration process involves:
- Registering your business brand with The Campaign Registry
- Registering your messaging campaigns (what you're sending and why)
- Getting approved throughput limits based on your trust score
Your automation platform should handle this registration for you. If it doesn't, that's a red flag.
SMS for Past Clients
Text isn't just for new leads. Your past clients are actually the best SMS audience because you already have a relationship. A birthday text feels personal. A home anniversary message shows you remember them. A quick "saw rates dropped, want me to check your refi numbers?" is genuinely helpful.
Past client texts have the highest response rates — often 60%+ — because these people already know and trust you. Use that.
Getting Started
Start with one automation: instant text response to new leads. Get that running, measure the improvement in contact rates, then expand from there. SMS isn't complicated. It's just consistently under-used by LOs who overthink it.
The borrowers who are going to fund your next deal are checking their phones right now. The question is whether your name shows up on their screen or your competitor's.