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 – July 1, 2021
Mortgage brokers need to become experts at generating their own refinance leads.
According to CNBC, after three straight weeks of declines, mortgage demand came crawling back, thanks to a drop in interest rates. Total application volume rose 4.2% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
Refinances led the gains, rising 6% for the week. They were still 22% lower than the same week one year ago because so many borrowers already refinanced last fall, when rates hit record lows. The refinance share of mortgage activity increased to 61.7% of total applications from 60.4% the previous week.
Total originations are predicted to hit $3.3 trillion. According to the Mortgage Bankers Association, lenders originated a record $3.83 trillion in home loans in 2020. That amount was the highest in history.
Right now, with the 30-year mortgage rate near 3.15%, about 14.5 million Americans could lower still their monthly mortgage payments through refinancing. According to Black Knight, that is down from 18.7 million near the start of the year. This is when the interest rate reached a record low of 2.65%.
It’s good news for borrowers – not as much for Lenders.
Earning a Share of the Refinance Business
Lenders will now be actively competing for retail business. In 2020, 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 end to 2021 will have to market. Direct mail is still a winning medium in the mortgage and finance industries. 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 there are still 14.5 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.
Cash-out refinances are surging in popularity jumping 42% in 2020 compared to 2019. 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 2020, 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.
Booming Real Estate Sales
The summer real estate market as states reopen and mortgage rates fall to record lows.
Contracts for previously owned U.S. homes surged in May by 44.3 percent. This is the most ever. This is as a result of states reopening from coronavirus lockdowns, according to The National Association of Realtors’ index of pending home sales.
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 July, 2021
Refinance Prospects – What else can we say ? According to Black Knight, there are 19 million mortgage holders who are good refinance candidates. They estimate these homeowners could save $3.95 billion a month by swapping out their home loans. Market to them now – before your competition does.
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.
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.
ReverseMortgage Prospects – We are seeing a big increase in reverse mortgage loan origination activities for 2020. There are more than 10,000 Americans reaching age 62 each day. They need specific retirement planning and resource tools as components to a financial longevity strategy. In the last few years, Reverse Mortgages have become an accepted part of a retirement strategy.
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. Drill down with our select options. These include modeled credit score, household demographics, and property criteria. Click HERE to read about the different between ITA lists and prescreen lists.
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.