Business, Free News Articles, Reports and Studies

Sales Boomerang releases Q3 2022 Mortgage Market Opportunities Report

OWINGS MILLS, Md. -- Sales Boomerang, the mortgage industry's top-rated automated borrower intelligence and retention system, and Mortgage Coach, a platform empowering mortgage lenders to educate borrowers with interactive home loan presentations, today announced the release of Sales Boomerang's latest Mortgage Market Opportunities Report. Despite significant year-over-year declines in mortgage volume, the Q3 2022 report showed an increase in Credit Improvement Alerts, signaling the opportunity for lenders to offer timely advice and tailored financial solutions to prospects with newly improved credit scores.

Methodology

The Mortgage Market Opportunities Report draws on Sales Boomerang system data to identify market opportunities of relevance to today's borrowers and lenders. To generate the report, Sales Boomerang reviewed data from more than 150 residential mortgage lenders, a subset of its clients, that use its borrower intelligence and retention tools to monitor millions of customer and prospect records. Sales Boomerang then calculated and compared the aggregate frequency with which those contact records triggered loan-opportunity, prescriptive-scenario and risk-and-retention alerts during the second and third quarters of 2022.

Key Findings*

Sales Boomerang's loan-opportunity alerts identify the contacts inside a lender's database who are actively shopping for a mortgage loan or who may be able to benefit from a new mortgage loan. Across the sample group, the frequency of each alert type in Q3 2022 was as follows:

* Mortgage Inquiry Alert: 2.84% of monitored contacts (down 12.21% from Q2)

A customer or prospect has shopped with a competitor in the last 24 hours.

* EPO Alert: 2.05% of monitored contacts (down 11.38% from Q2)

A customer or prospect whose loan closed ≤ 6 months ago has shopped with a competitor in the last 24 hours.

* Credit Improvement Alert: 5.47% of monitored contacts (up 33.41% from Q2)

A customer or prospect has improved their FICO score.

* New Listing Alert: 1.12% of monitored contacts (down 22.04% from Q2)

A customer or prospect has listed their home for sale.

* Equity Alert: 4.68% of monitored contacts (down 40.98% from Q2)

A customer or prospect's home equity has increased.

* Rate Alert: 0.49% of monitored contacts (down 80.94% from Q2)

The interest rate of a customer or prospect's existing mortgage is significantly higher than current prevailing rates.

Sales Boomerang's prescriptive-scenario alerts analyze not only whether a consumer could benefit from a given loan type, but also whether the consumer is credit-qualified to apply for financing. This additional layer of intelligence makes prescriptive-scenario alerts among the highest-converting available to mortgage lenders today. The frequency of each alert during Q3 2022 was as follows:

* Cash-Out Alert: 2.60% of monitored contacts (down 62.18% from Q2)

A borrower is credit qualified and has built sufficient equity to tap into the cash in their home.

* Rate-and-Term Alert: 1.23% of monitored contacts (down 51.37% from Q2)

A borrower is credit qualified and can benefit from the current interest rates for a refinance.

* FHA MI Removal Alert: 10.39% of monitored contacts (up 31.07% from Q2)

An FHA borrower has exceeded 20% equity and can remove mortgage insurance (MI).

For a subset of lenders that maintain servicing portfolios, the frequency of risk-and-retention alerts was as follows:

* Risk & Retention Alert: 30.28% of monitored contacts (up 40.45% from Q2)

A customer is engaging in one or more of 15 credit activities that may put their serviced loan at risk

Analysis*

* Mortgage Inquiry, EPO and New Listing alerts all decreased in Q3 as consumers stopped actively looking for new mortgage products. As interest rates rise and homebuyer sentiment approaches an all-time low, lenders will need to create their own opportunities for outreach rather than waiting for borrowers to reach out themselves. For example, lenders may find success capturing purchase opportunities by leveraging a seller buy-down strategy to combat high interest rates that might prevent buyers from committing to a purchase.

* Credit Improvement alerts increased for the third consecutive quarter. As lenders reconnect with turndowns whose credit scores have improved, they'll need to get creative in serving consumers' home finance needs. Recent data backs up the claim that borrowers can benefit from an adjustable-rate mortgage (ARM), so lenders should be prepared to educate borrowers on the pros and cons of these products.

* Risk & Retention alerts were up more than 40% in Q3 as consumers took on unprecedented personal debt, spending in other areas as the housing market continues to cool. According to the Federal Reserve, revolving credit card debt increased by 18.1% in August and total consumer debt surged to a record $4.68 trillion. Lenders can offer relief while protecting their servicing portfolios by presenting refinance options designed to help borrowers pay off high-interest debts and improve monthly cash flow.

"To find success in today's market, lenders not only must be proactive in their borrower outreach, they also must level up the creativity of the financial strategies they bring to the table. It's a tall order, but not an impossible one - and we're here to help," said Sales Boomerang and Mortgage Coach Chief Visionary Officer Alex Kutsishin. "With Sales Boomerang's borrower intelligence, lenders can spot opportunities a mile away. And by leveraging the power of the Mortgage Coach Total Cost Analysis, lenders can bring even the most nuanced financial scenarios to life in a way that inspires borrower understanding and trust."

*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 accepts no responsibility or liability for readers' use of the key findings or analysis included in this report.

About Sales Boomerang and Mortgage Coach:

Sales Boomerang and Mortgage Coach are trusted by more than 300 lenders, including brokers, independent mortgage companies, credit unions and banks, to connect borrowers with the right loan at the right time.

Sales Boomerang transformed the relationship between mortgage lenders and borrowers with the introduction of the first automated borrower intelligence system in 2017. Intelligent alerts notify lenders as soon as a past customer or prospect is ready and credit-qualified for a loan. As the mortgage industry's #1 borrower retention tool, Sales Boomerang helps lenders build lasting borrower relationships that maximize lifetime customer value. To learn more, visit https://www.salesboomerang.com.

Mortgage Coach is an award-winning platform that empowers mortgage lenders to educate borrowers with interactive presentations that model home loan performance over time. Side-by-side loan comparisons allow borrowers to make faster, more informed mortgage decisions while enabling lenders to consistently deliver an on-brand, consultative home financing experience that increases borrower pull-through, repeat business and referrals. To learn more, visit https://www.mortgagecoach.com.

Related link: https://www.salesboomerang.com/

This news story was published by the Neotrope® News Network - all rights reserved. ID:NEO2022

Advertising and Marketing, Business, Free News Articles, Reports and Studies

Sales Boomerang Q2 2022 Mortgage Market Opportunities Report

OWINGS MILLS, Md. -- Sales Boomerang, the mortgage industry's top-rated automated borrower intelligence and retention system, today released its latest Mortgage Market Opportunities Report. Sharp quarter-over-quarter increases in equity, credit-improvement and new-listing alerts in Q2 2022 point to areas of opportunity for lenders in a contracting mortgage market.

Methodology

The Mortgage Market Opportunities Report draws on Sales Boomerang system data to identify market opportunities of relevance to today's borrowers and lenders. To generate the report, Sales Boomerang reviewed data from more than 170 residential mortgage lenders that use its borrower intelligence and retention tools to monitor millions of customer and prospect records. Sales Boomerang then calculated and compared the aggregate frequency with which those contact records triggered loan-opportunity, prescriptive-scenario and risk-and-retention alerts during the first and second quarters of 2022.

Key Findings*

Sales Boomerang's loan-opportunity alerts identify the contacts inside a lender's database who are actively shopping for a mortgage loan or who may be able to benefit from a new mortgage loan. Across the sample group, the frequency of each alert type in Q2 2022 was as follows:

* Mortgage Inquiry Alert: 3.24% of monitored contacts (down 28.58% from Q1)

A customer or prospect has shopped with a competitor in the last 24 hours.

* EPO Alert: 2.31% of monitored contacts (down 8.93% from Q1)

A customer or prospect whose loan closed ≤ 6 months ago has shopped with a competitor in the last 24 hours.

* Credit Improvement Alert: 4.10% of monitored contacts (up 131.64% from Q1)

A customer or prospect has improved their FICO score.

* New Listing Alert: 1.44% of monitored contacts (up 69.02% from Q1)

A customer or prospect has listed their home for sale.

* Equity Alert: 7.93% of monitored contacts (down 13.14% from Q1)

A customer or prospect's home equity has increased.

* Rate Alert: 2.57% of monitored contacts (down 40.63% from Q1)

The interest rate of a customer or prospect's existing mortgage is significantly higher than current prevailing rates.

Sales Boomerang's prescriptive-scenario alerts analyze not only whether a consumer could benefit from a given loan type, but also whether the consumer is credit-qualified to apply for financing. This additional layer of intelligence makes prescriptive-scenario alerts among the highest-converting available to mortgage lenders today. The frequency of each alert during Q2 2022 was as follows:

* Cash-Out Alert: 6.87% of monitored contacts (up 30.94% from Q1)

A borrower is credit qualified and has built sufficient equity to tap into the cash in their home.

* Rate-and-Term Alert: 2.53% of monitored contacts (down 48.70% from Q1)

A borrower is credit qualified and can benefit from the current interest rates for a refinance.

* FHA MI Removal Alert: 7.93% of monitored contacts (down 24.36% from Q1)

An FHA borrower has exceeded 20% equity and can remove mortgage insurance (MI).

For a subset of lenders that maintain servicing portfolios, the frequency of risk-and-retention alerts was as follows:

* Risk & Retention Alert: 21.56% of monitored contacts (down 34.41% from Q1)

A customer is engaging in one or more of 15 credit activities that may put their serviced loan at risk

Analysis*

* With New Listing Alerts on the rise for a second consecutive quarter and Realtor.com reporting that new home listings are growing at a pace not seen since 2017, purchase origination opportunities continue to dominate the market, underscoring the importance of strong referral partner relationships.

* Cash-Out Alerts increased significantly from Q1 to Q2 as tappable home equity continued to grow in many markets nationwide. Lenders that don't currently offer home-equity products (e.g., cash-out refis, HELOCs) may be leaving money on the table.

* Credit Improvement Alerts saw a significant quarter-over-quarter increase, echoing widely publicized reports that Americans' overall financial well-being has improved thanks to pandemic-related fiscal measures including government stimulus payments, tax credits and student loan moratoriums. Since FICO scores are a lagging indicator, the impact of more recent COVID variants and consumer inflation have yet to be seen in credit scores. Regardless, now is a great time for lenders to revisit loan applicants they previously turned down due to a history of poor debt repayment.

* Rising interest rates have slowed the speed at which borrowers are paying off their mortgages, as evidenced by a precipitous drop in Risk & Retention Alerts. As a result, the value of mortgage servicing rights continues to grow. Lenders must carefully weigh the pros and cons - and potential balance sheet impacts - of retaining versus selling MSRs.

* This quarter saw a decline in Mortgage Inquiry Alerts, Rate Alerts, and Rate-and-Term Alerts, a predictable result at a time when interest rates are discouraging rate shopping and refinances.

"New home listings and cash-out alerts both trended upward in Q2, making purchase and home-equity products smart areas of investment for lenders as they prioritize assignment of limited resources," said Sales Boomerang Executive Vice President of Product Mike Spotten. "Another trend we are monitoring with interest is a massive upswing in credit-improvement alerts. Mortgage advisors are going to want to revisit prospects previously denied loans for credit-related reasons before they take their business to a competitor."

*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 accepts no responsibility or liability for readers' use of the key findings or analysis included in this report.

About Sales Boomerang and Mortgage Coach:

Sales Boomerang and Mortgage Coach are trusted by more than 300 lenders, including brokers, independent mortgage companies, credit unions and banks to connect borrowers with the right loan at the right time.

Sales Boomerang transformed the relationship between mortgage lenders and borrowers with the introduction of the first automated borrower intelligence system in 2017. The company's intelligent alerts notify lenders as soon as a past customer or prospect is ready and credit-qualified for a loan. As the mortgage industry's #1 borrower retention tool, Sales Boomerang helps lenders build lasting borrower relationships that maximize lifetime customer value. To learn more, visit https://www.salesboomerang.com.

Mortgage Coach is an award-winning platform that empowers mortgage lenders to educate borrowers with interactive presentations that model home loan performance over time. The company's side-by-side loan comparisons allow borrowers to make faster, more informed mortgage decisions while enabling lenders to consistently deliver an on-brand, consultative home financing experience that increases borrower pull-through, repeat business and referrals. To learn more, visit https://www.mortgagecoach.com.

Related link: https://www.salesboomerang.com/

This news story was published by the Neotrope® News Network - all rights reserved. ID:NEO2022

Business, Free News Articles, Reports and Studies

Sales Boomerang releases Q1 2022 Mortgage Market Opportunities Report

WASHINGTON, D.C. -- Sales Boomerang, the mortgage industry's top-rated automated borrower intelligence and retention system, today released its latest Mortgage Market Opportunities Report. The Q1 2022 report showed an increase in purchase and home-equity loan opportunities that could help lenders offset dwindling refi volume.

Methodology

The Mortgage Market Opportunities Report draws on Sales Boomerang system data to identify market opportunities of relevance to today's borrowers and lenders. To generate the report, Sales Boomerang reviewed data from more than 170 residential mortgage lenders that use its borrower intelligence and retention tools to monitor millions of customer and prospect records. Sales Boomerang then calculated and compared the aggregate frequency with which those contact records triggered loan-opportunity, prescriptive-scenario and risk-and-retention alerts during the fourth quarter of 2021 and the first quarter of 2022.

Key Findings*

Sales Boomerang's loan-opportunity alerts identify the contacts inside a lender's database who are actively shopping for a mortgage loan or who may be able to benefit from a new mortgage loan. Across the sample group, the frequency of each alert type in Q1 2022 was as follows:

* Mortgage Inquiry Alert: 4.53% of monitored contacts (up 2.49% from Q4)

A customer or prospect has shopped with a competitor in the last 24 hours.

* EPO Alert: 2.54% of monitored contacts (up 38.04% from Q4)

A customer or prospect whose loan closed ≤ 6 months ago has shopped with a competitor in the last 24 hours.

* Credit Improvement Alert: 1.77% of monitored contacts (up 55.26% from Q4)

A customer or prospect has improved their FICO score.

* New Listing Alert: 0.85% of monitored contacts (up 32.81% from Q4)

A customer or prospect has listed their home for sale.

* Equity Alert: 9.13% of monitored contacts (up 6.04% from Q4)

A customer or prospect's home equity has increased.

* Rate Alert: 4.33% of monitored contacts (down 14.60% from Q4)

The interest rate of a customer or prospect's existing mortgage is significantly higher than current prevailing rates.

Sales Boomerang's prescriptive-scenario alerts analyze not only whether a consumer could benefit from a given loan type, but also whether the consumer is credit-qualified to apply for financing. This additional layer of intelligence makes prescriptive-scenario alerts among the highest-converting available to mortgage lenders today. The frequency of each alert during Q1 2022 was as follows:

* Cash-Out Alert: 5.25% of monitored contacts (down 6.75% from Q4)

A borrower is credit qualified and has built sufficient equity to tap into the cash in their home.

* Rate-and-Term Alert: 4.93% of monitored contacts (down 50.95% from Q4)

A borrower is credit qualified and can benefit from the current interest rates for a refinance.

* FHA MI Removal Alert: 10.48% of monitored contacts (down 25.20% from Q4)

An FHA borrower has exceeded 20% equity and can remove mortgage insurance (MI).

For a subset of lenders that maintain servicing portfolios, the frequency of risk-and-retention alerts was as follows:

* Risk & Retention Alert: 32.87% of monitored contacts (up 5.42% from Q4)

A customer is engaging in one or more of 15 credit activities that may put their serviced loan at risk

Analysis*

* Mortgage Inquiry, EPO and New Listing alerts all increased in Q1 as consumers actively put themselves in the market for mortgage products. As the spring buying season picks up, lenders will need to be diligent in their borrower retention efforts, especially those looking to avoid an early payoff penalty.

* Despite the uptick in EPO alerts, Rate and Rate-and-Term alerts both decreased in Q1, another indicator that consumers are looking to purchase, not refinance. Of the alerts that decreased in frequency in Q1, Rate-and-Term alerts showed the biggest change, confirming the long-anticipated slowdown of the refinance boom.

* Slow is a relative term, however, as Equity alerts increased for the second consecutive quarter. As homeowners continue to build equity, lenders should continue to educate borrowers on home equity mortgage opportunities.

* After a significant drop in Risk & Retention alerts in Q4, the category saw a 5.42% increase in alerts in Q1. As more borrowers are flagged for exhibiting risky credit behaviors, mortgage servicers should continue to keep a close eye on their portfolios for default risk.

* Credit Improvement alerts saw one of the largest increases in Q1, signaling more credit-worthy borrowers are ready to begin shopping for a mortgage. Savvy lenders will recognize this opportunity to be proactive in their outreach.

"Experts have anticipated the switch to a purchase market for a year or more, but the market was slower to transition than initially expected. Our data verifies market opportunities are finally trending in the direction of purchase loans," said Sales Boomerang CEO Alex Kutsishin. "However, as the purchase market heats up, it will be important for lenders not to get tunnel vision, as our data shows increased opportunities in home-equity lending as well."

*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 accepts no responsibility or liability for readers' use of the key findings or analysis 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 intelligence system in 2017. The company's intelligent alerts notify lenders as soon as a past customer or prospect is ready and credit-qualified for a loan. As the mortgage industry's #1 borrower retention tool, Sales Boomerang is trusted by more than 170 lenders - including brokers, independent mortgage companies, credit unions and banks - to help build lasting borrower relationships that maximize lifetime customer value. To date, Sales Boomerang alerts have enabled lenders to close more than $150 billion in additional loan volume that would have otherwise been overlooked and achieve customer retention rates that outperform industry norms by an average of 3-5X. To learn more about Sales Boomerang and its No Borrower Left Behind(tm) ethos, visit https://www.salesboomerang.com.

Related link: https://www.salesboomerang.com/

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles, Reports and Studies

Sales Boomerang releases Q4 2021 Mortgage Market Opportunities Report

WASHINGTON, D.C. -- Sales Boomerang, the mortgage industry's top-rated automated borrower intelligence and retention system, today released its latest Mortgage Market Opportunities Report. The Q4 2021 report identified increasing opportunities for mortgage lenders to assist borrowers with tappable home equity, lending credence to analysts' expectations for a surge in home-equity-related mortgage activity in 2022.

Methodology

The Mortgage Market Opportunities Report draws on Sales Boomerang system data to identify market opportunities of relevance to today's borrowers and lenders. To generate the report, Sales Boomerang reviewed data from more than 160 residential mortgage lenders that use its borrower intelligence and retention tools to monitor millions of customer and prospect records. Sales Boomerang then calculated and compared the aggregate frequency with which those contact records triggered loan-opportunity, prescriptive-scenario and risk-and-retention alerts during the third and fourth quarters of 2021.

Key Findings*

Sales Boomerang's loan-opportunity alerts identify the contacts inside a lender's database who are actively shopping for a mortgage loan or who may be able to benefit from a new mortgage loan. Across the sample group, the frequency of each alert type in Q4 2021 was as follows:

* Mortgage Inquiry Alert: 4.42% of monitored contacts (down 16.13% from Q3)

A customer or prospect has shopped with a competitor in the last 24 hours.

* EPO Alert: 1.84% of monitored contacts (down 17.49% from Q3)

A customer or prospect whose loan closed ≤ 6 months ago has shopped with a competitor in the last 24 hours.

* Credit Improvement Alert: 1.14% of monitored contacts (down 13.64% from Q3)

A customer or prospect has improved their FICO score.

* New Listing Alert: 0.64% of monitored contacts (down 38.46% from Q3)

A customer or prospect has listed their home for sale.

* Equity Alert: 8.61% of monitored contacts (up 7.36% from Q3)

A customer or prospect's home equity has increased.

* Rate Alert: 5.07% of monitored contacts (down 27.16% from Q3)

The interest rate of a customer or prospect's existing mortgage is significantly higher than current prevailing rates.

Sales Boomerang's prescriptive-scenario alerts analyze not only whether a consumer could benefit from a given loan type, but also whether the consumer is credit-qualified to apply for financing. This additional layer of intelligence makes prescriptive-scenario alerts among the highest-converting available to mortgage lenders today. The frequency of each alert during Q4 2021 was as follows:

* Cash-Out Alert: 5.08% of monitored contacts (up 17.87% from Q3)

A borrower is credit qualified and has built sufficient equity to tap into the cash in their home.

* Rate-and-Term Alert: 10.05% of monitored contacts (up 160.36% from Q3)

A borrower is credit qualified and can benefit from the current interest rates for a refinance.

* Debt Alert: 1.33% of monitored contacts (down 23.12% from Q3)

A borrower is credit qualified and can benefit from paying off other debts with the equity in their home.

* FHA MI Removal Alert: 14.01% of monitored contacts (up 92.71% from Q3)

An FHA borrower has exceeded 20% equity and can remove mortgage insurance (MI).

For a subset of lenders that maintain servicing portfolios, the frequency of risk-and-retention alerts was as follows:

* Risk & Retention Alert: 31.18% of monitored contacts (down 13.82% from Q3)

A customer is engaging in one or more of 15 credit activities that may put their serviced loan at risk

Analysis*

* When a borrower puts less than 20% down on an FHA-insured loan, they are required to pay mortgage insurance (MI) premiums on top of their monthly principal and interest payments. FHA borrowers with MI may be unaware they have the option to remove their MI once they reach 20% equity. With a nearly 93% quarter-over-quarter increase in FHA MI Removal alerts, lenders have the opportunity to deliver immediate monthly savings to borrowers.

* Since Sales Boomerang's Cash-Out alerts only trigger for credit-qualified contacts, continued gains in this alert category show that borrowers are growing their credit scores alongside their equity. Lenders should prepare for continued cash-out refinance and HELOC activity in the coming months.

* Keen observers will notice that the Rate and Rate-and-Term alerts trended in opposite directions from Q3 to Q4. Following a year of interest rate growth, fewer consumers are positioned to benefit from a refinance solely based on the difference between their current interest rate and prevailing market rates - thus, the decline in Rate alerts. But a higher frequency of Rate-and-Term alerts indicates that even if the overall refi market is down, there's a growing subset of consumers who have the home equity and credit profiles necessary to benefit from a refinance.

* Mortgage Inquiry and EPO alerts declined for a third consecutive quarter, and New Listings were down for a second quarter in a row. With fewer consumers actively putting themselves in the market for mortgage products, lenders will need to be proactive in bringing financially advantageous opportunities to potential customers.

* Q4's 14% drop in Risk & Retention alerts was the category's first significant decline in 2021. Nonetheless, with nearly one in three borrowers still exhibiting risky credit behaviors, mortgage servicers should keep a close eye on their portfolios for default risk.

"Borrowers aren't always aware of the multitude of ways they can leverage their home equity, yet it's becoming increasingly clear that equity is creating some of the best financial opportunities for borrowers and lenders today. It is up to us to help mortgage advisors bring these opportunities to the table for their customers," said Sales Boomerang CEO Alex Kutsishin. "Experts may have predicted 2022 would be a year to focus on purchase transactions, but our data shows lenders would be well-served to shine equal light on home-equity lending."

*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 accepts no responsibility or liability for readers' use of the key findings or analysis 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 intelligence system in 2017. The company's intelligent alerts notify lenders as soon as a past customer or prospect is ready and credit-qualified for a loan. As the mortgage industry's #1 borrower retention tool, Sales Boomerang is trusted by more than 150 lenders - including brokers, independent mortgage companies, credit unions and banks - to help build lasting borrower relationships that maximize lifetime customer value. To date, Sales Boomerang alerts have enabled lenders to close more than $150 billion in additional loan volume that would have otherwise been overlooked and achieve customer retention rates that outperform industry norms by an average of 3-5X. To learn more about Sales Boomerang and its No Borrower Left Behind™ ethos, visit https://www.salesboomerang.com.

Related link: https://www.salesboomerang.com/

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles, Reports and Studies

Sales Boomerang releases Q3 2021 Mortgage Market Opportunities Report

WASHINGTON, D.C. -- Sales Boomerang, the mortgage industry's top-rated automated borrower intelligence and retention system, today released its Q3 2021 Mortgage Market Opportunities Report. Despite marketwide declines in loan volume, Sales Boomerang's report identified several fertile opportunities for mortgage lenders, including a high frequency of borrowers who are well positioned to refinance for a better rate, remove FHA mortgage insurance or tap into home equity.

Methodology

The Mortgage Market Opportunities Report draws on Sales Boomerang system data to identify market opportunities of relevance to today's borrowers and lenders. To generate the report, Sales Boomerang reviewed data from more than 150 residential mortgage lenders that use its borrower intelligence and retention tools to monitor millions of customer and prospect records. Sales Boomerang then calculated the aggregate frequency with which those contact records triggered loan-opportunity, prescriptive-scenario and risk-and-retention alerts during the second and third quarters of 2021.

Key Findings*

Sales Boomerang's loan-opportunity alerts identify the contacts inside a lender's database who are actively shopping for a mortgage loan or who may be able to benefit from a new mortgage loan. Across the sample group, the frequency of each alert type in Q3 2021 was as follows:

* Mortgage Inquiry Alert: 5.27% of monitored contacts (down 10.22% from Q2)

A customer or prospect has shopped with a competitor in the last 24 hours.

* EPO Alert: 2.23% of monitored contacts (down 8.23% from Q2)

A customer or prospect whose loan closed ≤ 6 months ago has shopped with a competitor in the last 24 hours.

* Credit Improvement Alert: 1.32% of monitored contacts (down 40.00% from Q2)

A customer or prospect has improved their FICO score.

* New Listing Alert: 1.04% of monitored contacts (down 24.09% from Q2)

A customer or prospect has listed their home for sale.

* Equity Alert: 8.02% of monitored contacts (down 6.20% from Q2)

A customer or prospect's home equity has increased.

* Rate Alert: 14.75% of monitored contacts (up 10.65% from Q2)

The interest rate of a customer or prospect's existing mortgage is significantly higher than current prevailing rates.

Sales Boomerang's prescriptive-scenario alerts analyze not only whether a consumer could benefit from a given loan type, but also whether or not the consumer is credit-qualified to apply for financing. This additional layer of intelligence makes prescriptive-scenario alerts among the highest-converting available to mortgage lenders today. The frequency of each alert during Q3 2021 was as follows:

* Cash-Out Alert: 4.31% of monitored contacts (up 291.82% from Q2)

A borrower is credit qualified and has built sufficient equity to tap into the cash in their home.

* Rate-and-Term Alert: 3.86% of monitored contacts (up 34.49% from Q2)

A borrower is credit qualified and can benefit from the current interest rates for a refinance.

* Debt Alert: 1.73% of monitored contacts (up 10.19% from Q2)

A borrower is credit qualified and can benefit from paying off other debts with the equity in their home.

* FHA MI Removal Alert: 7.27% of monitored contacts (up 366.03% from Q2)

An FHA borrower has exceeded 20% equity and can remove mortgage insurance (MI).

For a subset of lenders that maintain servicing portfolios, the frequency of risk-and-retention alerts was as follows:

* Risk & Retention Alert: 36.18% of monitored contacts (down 1.23% from Q2)

A customer is engaging in one or more of 15 credit activities that may put their serviced loan at risk

Analysis*

* Many FHA borrowers with mortgage insurance are unaware they have the option to remove their MI once they reach 20% equity. With a 366% quarter-over-quarter increase in FHA MI Removal alerts, lenders have the opportunity to deliver immediate monthly savings to borrowers.

* Although the frequency of Equity alerts fell slightly from Q2 to Q3, nearly one in 12 borrowers saw significant home equity growth over the last quarter. Moreover, the almost 300% quarter-over-quarter increase in Cash-Out alerts shows that borrowers have grown their credit scores alongside their equity, paving the way for more cash-out refinance and HELOC activity in the coming months. The strong performance of equity-based alerts is underscored by key observations from the latest CoreLogic Homeowner Equity Report, which found that the average homeowner gained $51,500 in equity during the past year while U.S. homeowners as a whole have seen their equity increase by a total of nearly $2.9 trillion since the second quarter of 2020.

* As long as interest rates remain low, refi opportunities remain on the table for many borrowers. This opportunity is apparent in the continued quarter-over-quarter growth of the Rate and Rate-and-Term alerts. However, with Mortgage Inquiry and EPO alerts both showing quarter-over-quarter decreases, lenders will need to be proactive in reaching out to potential refi customers, as many eligible customers do not appear to be shopping for rates on their own.

* With market experts long predicting a late 2021 home purchase boom, the 24% quarter-over-quarter decrease in New Listing alerts suggests lenders may need to revise their year-end revenue forecasts.

* Risk & Retention alerts held nearly steady from the second quarter. With more than one in three borrowers exhibiting risky credit behaviors, mortgage servicers should keep a close eye on their portfolios for default risk.

"As industry experts have predicted, we are starting to see the refinance market slow - and the purchase market has not yet picked up the slack," said Sales Boomerang CEO Alex Kutsishin. "Still, the big-picture view says we are still in the midst of a housing boom. Ample purchase and refinance opportunities remain, and our data intelligence points to myriad ways lenders can improve borrowers' financial position with the right loan product."

*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 accepts no responsibility or liability for readers' use of the key findings or analysis 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 intelligence system in 2017. The company's intelligent alerts notify lenders as soon as a past customer or prospect is ready and credit-qualified for a loan. As the mortgage industry's #1 borrower retention tool, Sales Boomerang is trusted by more than 150 lenders - including brokers, independent mortgage companies, credit unions and banks - to help build lasting borrower relationships that maximize lifetime customer value. To date, Sales Boomerang alerts have enabled lenders to close more than $30 billion in additional loan volume that would have otherwise been overlooked and achieve customer retention rates that outperform industry norms by an average of 3-5X. To learn more about Sales Boomerang and its No Borrower Left Behind(tm) ethos, visit https://www.salesboomerang.com.

@SalesBoomerang

Related link: https://www.salesboomerang.com/

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