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Lenders: Data That Can Help You Identify Your Prime Prospects

August 21, 2018  //  BY Team DataTree

Back in the day, the lending process relied in no small part on guesswork. Even with extensive applications, it was impossible to be assured that the information submitted was both accurate and current. Today, up-to-the-minute data is immediately available. A rich database of homeowner, real estate and mortgage data plus a proprietary process of producing home finance prediction scores enables lenders to identify prime lending prospects for refinancing, mortgages, home equity loans or home equity lines of credit (HELOCs), while minimizing the risk of wasting marketing efforts on homeowners who are not actively seeking loans or worse, making loans to homeowners who ultimately default.

Refi Intel Score

Taking advantage of lower interest rates represents one of the most common reasons for homeowners to refinance their mortgages. While previous conventional wisdom stated that refinancing was only worthwhile for interest rate savings of at least 2 percent, today’s borrowers often pursue refinancing loans for interest rate savings of 1 percent. Other homeowners refinance their mortgages to shorten the terms of their mortgages, or to convert a high-interest adjustable rate mortgage (ARM) to a lower-interest fixed-rate loan.

A Refi Intel score helps lenders identify homeowners who are likely to refinance their homes for any of the above reasons within the next 3 to 4 months, identifying prime prospects either among their present customer base or prospective customers. DataTree generates Refi Intel scores for conventional, FHA or cash-out refinance borrowers. With this information in hand, combined with conventional credit data, lenders can focus their marketing efforts on borrowers who are both receptive to marketing and most likely to qualify for a loan. 

By contrast, without this information, lenders may misdirect their marketing efforts toward customers or prospects who are not actively seeking to refinance their homes. In the meantime, they also lose out on “live” prospects, or lose former customers to other lenders.

Equity Intel Score

Homeowners obtain home equity loans or Home Equity Lines of Credit (HELOCs) for various reasons: to pay off high-interest credit card debt, to finance a major kitchen renovation or to cover unexpected medical or other expenses. An Equity Intel score indicates to lenders which homeowners are most likely to seek a home equity loan or HELOC in the near future. With this information in hand, lenders can target their outreach efforts toward prime prospects who are likely to respond positively. On the other hand, without this information, lenders risk missing out on the best prospects, while at the same time wasting marketing dollars on homeowners who are not intending to refinance. 

Purchase Intel Score 

A Purchase Intel score will help a lender identify homeowners who are in the market to sell their current homes and obtain new properties within the next 3 to 4 months. A Purchase Intel score also enables lenders to stay ahead of their competition for both new customers and ongoing business from existing customers.

For example, in a hot housing market, savvy home buying borrowers often obtain prequalification or preapproval to enhance their appeal to sellers. With a Purchase Intel score in hand, lenders can pursue well-qualified buyers seeking prequalification or preapproval. On the other hand, without this data, lenders stand to lose out to their competition. 

Household Income or Liquid Asset Estimations 

Identifying prospects who are actively seeking your services is only half the battle. It is also essential for lenders to practice due diligence. That is, prospective borrowers must be vetted and qualified to ensure that they are financially able to afford the loans that they are seeking. Household Income or Liquid Asset Estimations provide lenders with the information they need to make an informed lending decision. With this information, lenders can concentrate on “live” prospects who are also good credit risks while avoiding taking on borrowers who are at risk to default. In the process, response rates ROI for marketing dollars (and time spent) gets a boost, not to mention the all-important bottom line. 

Maintaining and Expanding Your Base

New business is vital to the viability of a company. Maintaining a loyal customer base is also essential to a company’s bottom line. Borrowers who are seeking to refinance their homes, borrow against the equity in their homes or purchase new homes are seeking the best terms possible. In addition, prospective homebuyers in hot markets often require expedient lending decisions in order to secure their dream homes.

At the same time, lenders naturally attempt to focus on prime prospects, while avoiding prospects who are not actively seeking loans or worse, at risk of default. Due diligence and instinct combined with analysis from DataTree Homeowner Marketing Solutions helps lenders maximize their outreach efforts toward prime prospects while minimizing their exposure to potentially bad loans.


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