Grow Your Mortgage Portfolio with Targeted Marketing
The best way to grow your mortgage portfolio is to manage your time effectively. Talk with qualified borrowers and spend less time on dead deals. Keep tabs on your current and past clients, while prospecting creditworthy borrowers who are ready to meet you at the closing table. How do you do this? Equifax can help you capture more of the right borrowers by applying predictive consumer insights to your segmentation and targeting strategies.
Nothing is worse than spending hours working on a marketing campaign to find little return on your investment. Narrow the focus of your marketing efforts to focus on potential borrowers who are more likely to be qualified and more likely to close the deal with your company.
Equifax provides Prescreen Direct™ with Property, which lets you tap into its reliable and comprehensive data — Equifax credit and property databases — to help make more informed marketing decisions. With Prescreen Direct, you can evaluate and identify loan prospects much faster and easier, tailor marketing messages to different segments, and create custom prospect lists on the fly based on your unique credit and loan-to-value criteria.
Equifax uses trigger points to alert you when a customer may be more likely to open a new loan or reenter the mortgage market. These triggers can be adapted to fit your company’s demographic or market segment so you can make contact with qualified consumers before your competitors do.
Retaining your past clients is important in any industry. If you’re not following up with your past clients about new potential deals, you can bet that one of your competitors is already pursuing them. Using trigger points with your client database helps lets you know the best times to reestablish contact.
Equifax’s mortgage services go beyond the credit report to deliver a risk-based assessment that is vital to your business. Receive instant and automated verification of employment and income data to save you time. Use identity verification and authentication tools to help protect you from the risk of fraud. Help determine a borrower’s net worth with property valuation and analytics.
Look at borrower’s undisclosed debt and liabilities to have a better view of the potential risk and receive daily updates on certain high risk behaviors from your clients. Follow borrower activity — from the time of your first credit pull to that meeting at the closing table. This has been a frequent underwriting blind spot that has caused stakeholders to lose money on high-risk deals. Make informed underwriting decisions with transparent data on all of your borrowers.
HARP Extended to 2015: Stay Ahead of the Competition
The Federal Housing Finance Agency (FHFA) recently announced it is extending the Home Affordable Refinance Program (HARP) for an additional two years. This is great news for borrowers who may be underwater on their mortgage loans. Homeowners now have until December 31, 2015, to take advantage of the program. Loan originators and financial institutions should stay on top of the guidelines and help qualified consumers refinance.
As a general rule, the guidelines for HARP have not changed with this most recent extension. To qualify, homeowners must be above an 80 percent loan to value (LTV) ratio, and the loan must be owned or backed by Fannie Mae or Freddie Mac. There is no maximum LTV requirement for HARP but the loan must have been sold to Fannie or Freddie before May 31, 2009. Consumers do not qualify if the home has already been refinanced through HARP, unless it was a Fannie Mae loan refinanced between March and May 2009. Borrowers are required to have no late mortgage payments in the last six months, and no more than one late payment over the last 12 months. There is no credit score requirement to qualify for HARP.
More than 2.2 million homeowners have taken advantage of the affordable refinance program since it was instituted in 2009. It is not known how many more homeowners may qualify for this type of refinance. Borrowers who were previously unqualified due to a late mortgage payment now have adequate time to make six months of on-time mortgage payments to qualify.
Obtaining an accurate view of a borrower’s income and financial capacity can be difficult for credit professionals. How do lenders take advantage of the HARP program without putting their institution at risk with underwater loans? Equifax Decision 360, a program that utilizes data sets pertaining to the borrower’s income, assets, employment and tax information, provides a comprehensive view of a borrower’s credit, capacity and collateral to help lenders make informed, risk-based decisions.
Consumer credit reports and borrower-provided income information don’t always tell the whole story. Real-time updates help to fill in these information gaps, while calculating each borrower’s ability to pay throughout the loan cycle.