With interest rates 0.85% higher than they were a year ago, many mortgage companies are struggling to stay afloat. Not only are consumers hesitant to buy or sell their homes in a tight market — many are also oblivious or opposed to refinancing. According to Black Knight’s September Mortgage Monitor Report, an estimated 6.5 million homeowners recently missed the opportunity to refinance their mortgages due to rising rates (totaling roughly $1.5 billion in missed savings per month). With better communication from mortgage professionals, perhaps these homeowners could have benefitted before it was too late.
Although opportunities for mortgage companies in the current market are few and fleeting compared to years prior, that doesn’t mean that now’s the time to play it “safe.” In fact, using same-old sales tactics that worked when the market was less competitive may leave your business behind. Given tough market challenges, now’s the time to think creatively about ways you can more efficiently, and more strategically, market to your target audience. The first place to start? A solid base of in-depth, insightful data.
Using Data to Deliver High-Quality Leads
Although millions of homeowners have already missed out on lucrative refinance options, there are still millions more that could benefit. According to the mortgage monitor report, 1.86 million mortgage holders currently have an incentive to refinance. With access to the right data, mortgage companies can quickly find these leads and communicate with them in a way that will lead them to close.
Although most mortgage companies have access to basic data on consumers’ product history with their institution, this type of information will unfortunately only get them as far as their competitors. By partnering with a sophisticated, data-driven marketing partner (we just so happen to know someone, FYI), your mortgage team can market to consumers with more confidence. Mortgage marketing specialists like Monster Lead Group have access to databases that deliver more than just the basics. With access to information like a customer’s current ownership and liens on their home, recent sales in the neighborhood, HOA details, tax status, and property value, we can better inform your marketing campaign. Not only will this type of information help you identify the highest value leads — it will also help you inform your conversation with them.
Weeding Out Fraud and Reducing Wasted Efforts
Unfortunately for lenders, consumers are thinking creatively in today’s challenging market as well. With the right data, mortgage companies can quickly weed out non-viable leads before wasting time or money on marketing efforts. For example, Monster Lead Group’s access to one of the market’s most sophisticated online property research database allows us search billions
of recorded documents in minutes — something that takes many mortgage companies days or even weeks to complete. We can verify property characteristics, property ownership, and HOA details in minutes, allowing our customers to move quickly ahead of their competitors.
The Confidence to Close — No Matter What the Market Conditions
If Black Knight’s report of current conditions doesn’t challenge you enough, here’s a prediction that might make even the savviest mortgage maven reconsider his business strategy: According to Black Knight, if interest rates creep up to 6%, the refinanceable population would hit a 15-year low.
With this type of forecast, mortgage professionals will almost surely be forced to innovate in the near future. Now’s the time to get a head start so that you can continue to close with confidence — no matter what the market may bring. With a data-driven, experienced mortgage marketing professional on your side, you’ll be able to keep your business up, even if the market reaches a new low. Contact Monster Lead Group to learn more about how our data can deliver what your business needs for the future.