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Accelerating Home Equity Marketing: Let the Data Do the Decisioning

September 21, 2022  //  BY Paul W. Harris

As home equity lending gains momentum among both traditional and non-bank lenders, so too does the competition to gain market share. In Part I of this two-part blog series, we reviewed how lenders can gain ground by reducing risk and decreasing costs for more efficient and profitable HELOC originations. For Part II, we’ll look at how to use data to increase marketing return on investment (ROI).

Lenders who prioritize their marketing efforts using advanced data-sourced solutions will reap the biggest rewards. Not only can customizable property and homeowner data identify and deliver high-quality home equity prospects, it can do so cost effectively for a higher ROI. And with resources being constrained as the overall mortgage market constricts, not achieving a respectable ROI is simply not an option. 

In the race to build home equity lending volume, the key to getting ahead is to actively market to consumers. While some homeowners will raise their hand to tap their equity, many more will need to be nudged and nurtured to understand their HELOC options. In both cases, accurate data can provide the intelligence and decisioning parameters for targeted outreach that builds awareness about these low-cost loan options among prospects. Letting the right data identify the right prospects will lead the way, and lenders who aren’t actively inviting consumers to explore HELOC options, whether using their in-house customer lists or third-party generated lists, will miss out. 

Fortunately, there are a number of solutions that allow lenders to identify the best prospects using the best foundational and original-sourced data.

Customized list generation from First American Data & Analytics DataTree® Lists offers advanced search features to quickly identify properties with specific equity ranges and single mortgages and from there, generate targeted prospect lists based on geography, length of ownership, mortgage type and hundreds of other filters. The specificity filtering and suppression features can pinpoint exactly what type of consumer a lender wants to target. For instance, they could decide they want to focus only on consumers with more than 25% equity in their home, on property values within a certain range, or on loans with certain estimated outstanding balances. They could develop campaigns based on geography and proximity to actual brick and mortar branch locations using radial search features. They can even focus on properties built within a specific timeframe and with certain characteristics – say homes built from 1983 to 1987 with shake roofs, identifying homeowners who may be ready for a new roof and in need of extra cash to fund it. It’s all possible and cost effective with highly targeted list generation, but the key to this specificity is accurate and timely data.

For more customized list development and analysis, including managing and prioritizing in-house customer lists, First American Data & Analytics Advanced Data Solutions (ADS) gives lenders the ability to identify, mix and match, and compile highly defined prospect lists with integrated and verified data. ADS can reduce overhead costs of in-house database administration and improve ROI with built-in data expertise and line-by-line dataset guidance.  

The First American Data & Analytics Propensity Scores provides further insight by identifying prime HELOC lending prospects while also minimizing the risk of spending marketing resources on homeowners who aren’t good candidates. Incorporating this kind of data intelligence reduces marketing costs by targeting only the most qualified customers. Our experience with customers shows that layering a propensity model in a direct mail campaign can significantly increase response rates

But it isn’t just about targeting the right consumers with the right messaging that delivers solid marketing ROI. Another way to improve HELOC marketing and sales effectiveness is for lenders to use market-specific data to assess the competition, which lets them uncover their own strengths and weaknesses and prioritize where they want to spend marketing resources. MarketView provides valuable research and benchmarking data on HELOC activity by lender and individual markets, providing statistics for all transactions for up to 100 lenders in any market. 

In any competition, it’s the nuanced details that can make the bottom-line difference. Tapping into reliable and invaluable property and homeowner data, with well-planned marketing messaging and execution, is a proven strategy that delivers measurable ROI.

Get acquainted with our HELOC-focused products and learn how our solutions can work for you. Click here for more information. 

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