Data underscores opportunity for lenders to focus resources on home buying and equity opportunities
WASHINGTON, DC, April 18, 2022 (SEND2PRESS NEWSWIRE) — Sales Boomerang, the mortgage industry’s top-rated automated borrower intelligence and retention system, today released its latest mortgage market opportunity report. The Q1 2022 report showed an increase in home equity buying and lending opportunities that could help lenders offset lower refi volume.
The Mortgage Market Opportunities report leverages data from the Sales Boomerang system to identify market opportunities relevant to today’s borrowers and lenders. To generate the report, Sales Boomerang reviewed data from more than 170 residential mortgage lenders who use its borrower intelligence and retention tools to monitor millions of customer and prospect records. Sales Boomerang then calculated and compared the overall frequency with which these contact records triggered loan opportunity, normative scenario, and risk and retention alerts during Q4 2021 and Q1 2022.
Sales Boomerang’s Loan Opportunity Alerts identify contacts in a lender’s database who are actively seeking a mortgage or who may qualify for a new mortgage. Across the sample, the frequency of each type of alert in Q1 2022 was as follows:
* Mortgage Application Alert: 4.53% of contacts monitored (up 2.49% from Q4) A customer or prospect has purchased from a competitor in the last 24 hours.
*EPO alert: 2.54% of follow-up contacts (+38.04% vs. Q4) A customer or prospect whose loan closed = 6 months ago has made purchases from a competitor in the past 24 hours.
* Credit Improvement Alert: 1.77% of monitored contacts (up 55.26% from Q4) A client or prospect improved their FICO score.
* New Listing Alert: 0.85% of Contacts Monitored (up 32.81% from Q4) A client or prospect has listed their home for sale.
* Equity Alert: 9.13% of contacts monitored (up 6.04% from Q4) A customer’s or prospect’s equity has increased.
* Rate alert: 4.33% of follow-up contacts (down 14.60% from Q4) The interest rate on a client’s or prospect’s existing mortgage is significantly higher than the rates in force.
Sales Boomerang’s Prescriptive Scenario Alerts not only analyze whether a consumer could qualify for a given type of loan, but also whether the consumer is qualified to apply for financing. This added layer of intelligence makes Prescriptive Scenario Alerts one of the highest conversion rates available to mortgage lenders today. The frequency of each alert during the first quarter of 2022 was as follows:
* Withdrawal alert: 5.25% of contacts monitored (down 6.75% from Q4) A borrower is credit qualified and has built up sufficient equity to draw on money from their home.
* Rate and duration alert: 4.93% of contacts followed up (down 50.95% from the fourth quarter) A borrower is credit qualified and can benefit from the prevailing interest rates for a refinance.
* FHA MI Withdrawal Alert: 10.48% of Contacts Monitored (down 25.20% from Q4) An FHA borrower has exceeded 20% equity and may remove mortgage loan insurance (MI).
For a subset of lenders who maintain management portfolios, the frequency of risk and retention alerts was as follows:
* Risk and retention alert: 32.87% of contacts monitored (up 5.42% from Q4) A customer engages in one or more of 15 credit activities that could jeopardize their loan managed
* Mortgage application, takeover and new listing alerts all increased in the first quarter as consumers actively marketed mortgage products. As the spring shopping season picks up, lenders will need to be diligent in their efforts to retain borrowers, especially those looking to avoid a prepayment penalty.
* Despite the rise in EPO alerts, rate and rate and duration alerts both declined in the first quarter, another indicator that consumers are looking to buy, not refinance. Of the alerts that declined in frequency in the first quarter, rate and duration alerts showed the biggest change, confirming the long-awaited slowdown in the refinancing boom.
* Slow is a relative term, however, as equity alerts rose for the second consecutive quarter. As homeowners continue to accumulate equity, lenders should continue to educate borrowers about home equity mortgage opportunities.
* After a significant decline in risk and retention alerts in Q4, the category saw a 5.42% increase in alerts in Q1. As more borrowers are flagged for risky credit behaviors, mortgage managers should continue to closely monitor their portfolios for default risk.
* Credit enhancement alerts saw one of the biggest increases in the first quarter, signaling that more creditworthy borrowers are ready to start shopping for a mortgage. Savvy lenders will recognize this opportunity to be proactive in their outreach.
“Experts have been anticipating the shift to a buy market for a year or more, but the market transition has been slower than originally anticipated. buying,” said Alex Kutsishin, CEO of Sales Boomerang. “However, as the buying market heats up, it will be important for lenders not to have tunnel vision, as our data also shows increased opportunities in home equity loans.”
* Key findings and analysis provided for informational purposes only. The data represented in the Mortgage Market Opportunities report is historical. Past performance is not a reliable indicator of future results. Sales Boomerang disclaims any responsibility for readers’ use of any key findings or analyzes included in this report.
About Sales Boomerang:
Sales Boomerang transformed the relationship between mortgage lenders and borrowers with the introduction of the first automated borrower information system in 2017. The company’s smart alerts notify lenders the moment a former client or prospect is ready and qualified for a loan. More than 170 lenders, including brokers, independent mortgage companies, credit unions and banks, trust Sales Boomerang, the mortgage industry’s #1 borrower engagement tool, to help build lasting relationships with borrowers that maximize customer lifetime value. To date, Sales Boomerang alerts have enabled lenders to close more than $150 billion in incremental loan volume that would otherwise have been overlooked and achieve customer retention rates that exceed industry standards. 3 to 5 times on average. To learn more about Sales Boomerang and its No Borrower Left Behind™ philosophy, visit https://www.salesboomerang.com.
NEWS SOURCE: Sales Boomerang
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