When it comes to Mortgage Lead Lists, you have no further place to look than the experts on the Dataman Group Team. They will provide you with a high converting lead list.
DataDale’s Mortgage Trends – September 15, 2022
Interest rates have skyrocketed and mortgage originations are down 11%.
We all know that 2021 was a banner year for the mortgage industry. Home purchases have been through the roof and the number of originations has sky rocketed. At the same time, low interest rates have fueled a tremendous number of refinances. At this point, many experts are predicting a phenomena called mortgage burnout.
What happens is that many people have already take advantage of low rates to refinance. That reduces the pool of people who could still benefit from refinancing. It’s a cycle. We’re at the point where any additional drop in rates doesn’t always mean there will be people who will refinance.
The truth is that it’s slim pickings out there right now – which means you have to be more aggressive in your marketing strategies.
There are fewer homes available to buy. Fewer first mortgages to originate
Customers who can’t find a home to buy are shifting to fund renovations
Some people are refinancing without property inspections.
Cash-out refinancing is setting new records.
Narrower margins for Originators
There are more people in the mortgage industry than before, causing a lot of competition.
Additional emphasis on prospecting for new business
Keep your eye on debt consolidation / people who are underwater,
Earning a Share of the Business
Lenders will now be actively competing for retail business. In 2021, many homeowners were self-motivated to refinance. As the rates increase, there will be fewer homeowners voluntarily contacting mortgage brokers looking to refinance.
Mortgage brokers who want a profitable 2022 will have to market. Direct mail is still a winning medium in the mortgage and finance industries. Of all marketing channels, direct mail coveys the most trust and authority. As the rates increase, homeowners are not going to waltz in your door. You need to get out there and reach out to them.
Selecting the Right Prospects
According to Black Knight, mortgage refi demand has dropped 4%. There are still 9 million Homeowners who are eligible to refinance. This is how to select the best prospects for your lead list.
Homeowners whose new loan can potentially lower their 30-year mortgage by at least three-quarters of one percentage point. (for example, from 3.75% down to 3% or lower).
Have at least 20% equity in their home. (This means they have paid off at least 20% of the value).
According to Black Knight, homeowners who fit the above criteria could end up saving about $300 a month by refinancing to a lower rate.
Consequently, mortgage companies need to reach out to these Homeowners. They are the prime refinance candidates. Remember, if they don’t hear from you first, they are likely to click on the top mortgage company they see online in Google search.
Mortgage brokers need to take advantage of cash out refinances. This will continue be an important market segment for lenders.
Cash-out refinances are surging in popularity. Remember, there is a record $10 trillion in accessible equity available to homeowners. This has been fueled by rising home prices combined with lower mortgage rates and the need for ready cash. A cash-out refinancing enables homeowners to trade the equity in their homes for a lump sum of cash. In this case, homeowners pay off their old mortgage with a new one, and keep the extra cash that’s left over. In 2021, that averaged about $50,000 per transaction.
Low Down Payments
The low down payment mortgage has become the standard entry to home ownership in the U.S.
More than 1.3 million homeowners put less than 20 percent down on their mortgage in last year. This is according to a report by the U.S. Mortgage Insurers (USMI) association. The number of low down payment mortgages backed by private mortgage insurance (PMI) increased by 22.9 percent in the same period. PMI is generally required on mortgages with less than 20 percent down.
In fact, 58 percent of agency mortgages had some type of mortgage insurance, according to the Urban Institute. The majority of those home loans were insured by PMI (41 percent). The next highest groups were FHA (36 percent) and VA (23 percent). Mortgages with PMI have been on the rise since 2016. That’s when homeowners put less down.
Is the Boom in Real Estate Sales Over?
Inventory is low. Yes, there is still new construction available and homes are still for sale in many areas. But home prices have gone up astronomically. many prospective home buyers can’t find a home to buy. What we are seeing is that many people who have been waiting for inventory are staying in place. They are shifting to cash-outs and renovation loans.
How’s Your Visibility?
Homeowners eager to refinance and save are grabbing at record-low mortgage rates. But, are they applying with you?
You need to get your messages out now. In other words, you have no time to delay getting your letters ready to mail. In addition, you want to plan a companion digital display to make your message more visible / more important. And, don’t discount telemarketing. If you have a good script, it still generates leads!
Above all, you want to be first in the door with your programs.
Top List Picks for September, 2022
Cash-outRefinance Prospects – Reach homeowners who are looking to pay off their old mortgage and keep some extra cash at the same time. Very popular with consumers looking for some ready cash.
ReverseMortgage Prospects – We are seeing a big increase in reverse mortgage loan origination activities. There are more than 10,000 Americans reaching age 62 each day. Many senior homeowners are looking for a way to fund their retirements. Mortgage brokers can target qualifying seniors who are looking to leverage the value in their homes so they can age in place.
First Time Home Buyers – We overlay many elements on our Renters data to qualify this group. We use age, income, marital status, length of residence, ethnicity, modeled credit and geography. Consequently, the First Time Home Buyer overlay really enhances the basic renter data. Millennials are also aging up. The key is marketing credit down payment assistance and credit opportunities.
Renovation Loan Prospects – People are staying in their homes longer and taking out loans to renovate and remodel their homes. Therefore, many homeowners are making upgrades to their homes to age in place.
Invitation To Apply Lists – These mortgage lead lists are for those mortgage companies looking for an alternative or supplement to prescreen data. Select by modeled credit score, household demographics, and property criteria. Click HERE to read about the different between ITA lists and prescreen lists.
Refinance Prospects – According to Black Knight, there are still 9 million mortgage holders who are good refinance candidates. They estimate these homeowners could save $3.1 billion a month by refinancing their home loans. They may still want to refinance.
Target Unique Market Segments with our Mortgage Lead Lists
Latinos – Latinos were the only demographic group that increased its rate of home ownership for three consecutive years. This is according to the National Association of Latino Real Estate Professionals. For example, Latino Home ownership actually accounts for nearly 75% of the net increase in US Home Ownership. For that reason, the Hispanic segment is a key market group that must not be overlooked. Marketers can easily request Hispanic surnames on their mortgage prospect lists.
Millennials – the largest wave of New Home Buyers, representing 33% of last year’s home buyers. Millennials are now reaching peak home buying age. This means that you need to reassess your marketing strategies to accommodate the preferences of Millennials. The First Time Home Buyer list is still the top list for new originations. Want to learn more? Read DataDale’s recent article about Marketing Mortgage Products to Millennials.
In conclusion, with a little creativity, Mortgage Marketers can prosper in today’s economy.
Focus your marketing on what would trigger the need for a mortgage
Telephone numbers are available on most mortgage lead lists. We offer both landline and cellphone data. At Dataman Group, we believe in responsible telemarketing. Therefore, if you want mortgage telemarketing leads in your market, our data is flushed against Federal and State Do Not Call Lists. Federal SAN required for all telemarketing lists.
Email addresses can be appended to your lists. Estimate we will locate email addresses about 25% of the list.