Mortgage Lenders Should Capitalize on a (Possible) Surge in Housing

September 1, 2023

Is Airbnb on the verge of collapse?

Recent indicators have suggested a looming downturn in the short-term rental platform’s revenues. Such an economic shift could result in significant repercussions for the housing sector.

But where there is change, there’s also opportunity.

A New Surge in Housing Inventory?

Airbnb hosts, a majority of whom are entrepreneurial homeowners, have reaped significant financial gains by capitalizing on the short-term rental boom. But with revenues dropping, many may find it insupportable to maintain properties specifically for this purpose. This scenario points towards an impending surge in housing inventory, as hosts might put their properties up for sale. Even if a “surge” does not transpire – time will tell – it spotlights a need for lenders and brokers to take advantage of opportunities when they are at hand. Consider:

  • According to a recent report from data and analytics group AllTheRooms, revenues per listing for the San Francisco-based Airbnb have dropped by almost 50 percent in cities like Austin, TX, and Phoenix, AZ.
  • There are currently 1 million Airbnb homes compared to 570,000 homes for sale in the U.S.
  • Between June 28-29, when news of a potential collapse broke, stock prices for Airbnb dropped from $131.35 per share to $123.42, signifying customer skepticism.

Whether or not the speculated Airbnb “collapse” materializes, one thing remains clear: the tumultuous nature of today’s news cycle makes it increasingly difficult for any single message to stand out. Amidst the digital barrage of notifications, emails, and online ads, the intimate, tactile experience of receiving and reading direct mail becomes even more unique. For mortgage lenders, this presents an opportunity to connect on a deeper, more personalized level with their target audience.

Direct mail marketing solutions can pierce through the noise, delivering messages that not only inform but also resonate. By ensuring your communications are both timely and tangible, lenders can foster a sense of trust and reliability, encouraging potential clients to engage even when the housing market remains steady.

A Window of Opportunity

While this could be a challenging time for some, for mortgage loan officers, it presents an unprecedented opportunity. When new housing floods the market, potential buyers will be on the lookout for attractive mortgage deals. The catch? Capturing this audience before the competition does.

Direct mail marketing is a frequently underestimated tool that delivers a strategic advantage. A personalized direct mail campaign can target prospects and existing partners, providing information about favorable mortgage rates, offers, and more. By building a connection with potential clients through tangible, direct outreach, lenders can establish trust and foster relationships that digital mediums often fail to garner.

Leveraging Portfolio Monitoring Services

Another ace up the mortgage lender’s sleeve is utilizing portfolio monitoring services. Take Camber Marketing Group, for instance. Our services enable mortgage lenders to be instantly alerted when a client’s credit data is pulled for a mortgage. This real-time information allows lenders to proactively reach out to clients, fostering retention and ensuring they remain the preferred choice for existing customers.

By retaining customers while simultaneously exploring new opportunities arising from today’s talk of Airbnb “collapse” or tomorrow’s housing headlines, mortgage lenders can strategically navigate the shifting terrains of the housing sector.

The projected dip in Airbnb revenues and the subsequent surge in housing is a testament to the ever-evolving nature of the real estate market. For the savvy mortgage lender, the horizon is bright, with opportunities waiting to be seized. It’s a game of strategy, timing, and leveraging the right tools. Thanks to the enduring value of direct mail, mortgage lenders can be well-prepared to navigate both speculative market shifts and the constants of the industry. Camber Marketing Group can help. Reach out to our team today to learn more.

Boost Client Retention (and Beat Competitors to the Punch) with Portfolio Monitoring Services

May 25, 2023

When you think of how much you invest to create a new customer, the value of retaining that customer is significant.

As a lending officer, your clients are at the very heart of your business. With today’s competition in the lending industry, it is important to implement smart lending practices that will help retain clients. The likelihood of selling to an existing customer in the future is much greater than selling to new prospects.

Retention is the key. And one of the most effective ways to achieve it is through portfolio monitoring services. Keeping tabs on your clients’ credit activities over a given period can help you gain insight into their financial habits and better respond to their financial needs.

Here’s how it works:

  • When a current or former client is in the market for a new mortgage, portfolio monitoring services will notify you within 24 hours of their credit inquiry.
  • A custom retention letter is mailed on your behalf, helping you engage and retain your past customers within 24 hours of them signaling a need.
  • Clients are happy because you are helping them right when they need it and making sure they are aware of all their lending options.

As we mentioned, happier, non-nomadic clients are the goal. Monitoring services aren’t just a tool to keep early payoffs at bay, they frequently save customers from hidden, costly fees that your competitors never even bother to disclose.

Here are some other ways to leverage portfolio monitoring services to shine in the eyes of your customer:

  • Get Their Attention: Eye-catching retention pieces are crucial to set your letter apart from the general mail that consumers receive daily. You want pieces that speak directly to your customers’ needs and remind them of all the reasons that working with you again will benefit them.  This will give you the highest chance of engagement.
  • Offer Personalized Credit Services: Every client is unique, and what they need from you financially may differ. Using portfolio monitoring services, you can collect and analyze data specific to each client’s financial behavior, allowing you to personalize your offerings and spotlight your customer service skills. Not only do you position yourself as a lender who knows and cares about your clients’ financial well-being, but by offering personalized solutions to your clients, you also build trust and confidence while setting yourself apart from your competitors.
  • Communicate with Clients. This is a big one. In today’s fast-paced world, lenders must be proactive in reaching out to clients to update them on their accounts and answer any questions they may have. Portfolio monitoring services provide a blueprint, of sorts, to your customers’ financial needs, which you can then use to drive effective direct mail correspondence. Whether offering advice on how they can improve and maintain their credit score or offering the latest lending options that suit their needs, monitoring services make you a shoo-in for success, while beating your competitors to the punch.
  • Provide ongoing guidance. Portfolio monitoring services also allow you to provide ongoing guidance, rather than waiting for them to come to you with questions or concerns. Be proactive with regular educational materials, from monthly newsletters offering financial tips and advice, or quarterly check-ins to reassess a customer’s financial health. Leverage direct mail solutions to remain front-of-mind and reinforce your commitment to their ongoing prosperity.

Camber knows that helping your past clients with their next loan is the fastest and easiest way to generate more closes each month at the lowest cost. Consider: 1% – 3% of your past customers are in the market for a new mortgage each and every month.  Implementing our portfolio monitoring services can help to keep clients satisfied – and stationary – while beating your competitors’ best efforts in the process. And did you know? Using direct mail to retarget can deliver up to eight times the response rate of digital marketing. If you would like to set up a time to discuss portfolio monitoring options with one of our team members, Contact us today.

How to Leverage Cash-Out Opportunities While Fostering Long-Term Client Relationships

April 14, 2023

We all know that cash-out opportunities allow homeowners to convert the equity they have into dollars, while they continue to pay off their mortgage. Camber Marketing Group can help you with direct marketing campaigns designed to let customers and potential clients know about leveraging cash-out opportunities.

But for lenders, they can also be a way to convert the personal equity you have built through your professional relationship into future opportunities for engagement, retention, referral, and so much more.

Consider this: in 2021, lenders tapped into approximately $1.2 trillion in cash-out refinances, a 20 percent increase from the year before, and hitting a high that hadn’t been seen since 2005.

Still, according to data culled by analytics firm Black Knight, recapture rates from that same period remained shockingly low – with only 21% of borrowers remaining true to their original lender.

Why? Some fingers pointed to more efforts being poured into attracting new blood than fostering a business relationship with existing clients, even when the cost of acquisition is approximately five times more than the cost of retention.

And while mortgage rates almost doubled beginning in 2022, with FHFA boosting upfront fees for most cash-out loans, rate lock activity turned a corner once again earlier this year, with cash-out refis rising 25% in January.

Luckily, there are ways that loan officers can up their retention game considerably, all while helping their customers refinance. After all, the ins and outs of cash-out opportunities may be confusing for your borrowers. By helping them navigate the financing process you may be able to foster long-term relationships simultaneously. Here are just four ways to make it happen:

  1. Teach: It’s more than likely that borrowers, particularly young families, may not understand the requirements for cash-out financing, how much they can borrow, or the potential risks associated with this kind of loan. As a mortgage lender it is important to provide borrowers with clear and concise information on the cash-out financing process, including an overview of the application process, what documents they need to provide, and the timeframe for approval.

It’s also critical that lenders educate borrowers on the different types of cash-out loans available. Borrowers may be eligible for an FHA cash-out refinance or a conventional cash-out refinance. Each comes with its own set of eligibility requirements and terms. By explaining the pros and cons of each, you help borrowers make the best decision for their unique financial situation.

  1. Assess: If a borrower is considering cash-out opportunities for home improvements, help them estimate the costs of the renovations and determine if the increased monthly mortgage payment will fit within their budget. When you collaborate with borrowers and help them see their financial situation in a new light, you not only ensure that informed decisions are made – which helps both parties in the long run – but you begin to build, or build upon, a trusting professional relationship that will serve you well in the decades to come.
  2. Support: Even after approval is granted, you should continue to provide support throughout the life of the loan. Keep in touch with your customers via direct mail marketing. Help them understand their monthly mortgage statement and provide them with a lifeline they can access to ask questions about loan terms or receive advice on how to manage their monthly payments. Building a relationship with borrowers and providing ongoing support ensures a successful experience with your company that is worth telling their friends and family about.
  3. Monitor: Keep monitoring interest rates and the availability of funds. If rates drop, reach out to eligible borrowers immediately and let them know about new opportunities to refinance cash-out loans at a lower rate. Camber Marketing Group can help you design a campaign to reach borrowers quickly when they need you most.

By working closely with your borrowers, lenders help ensure that they make informed decisions about their cash-out financing options and have nothing but positive things to say about their loans.

Camber Marketing Group will help you launch a marketing campaign targeted at eager groups of credit-qualified, equity-rich homeowners. Reach out to us today to find out more about options and to get started.

Early Payoff Penalties Pose a Real Risk for Brokers

January 19, 2023

Recent rate movements are prompting an uptick in early payoffs, creating new risks for mortgage brokers.

Mortgage rates have dropped rapidly over the last few months. In December, alone, they stood at three-month lows and were an entire point below November’s rates.

Attractive new loans will be coming online, and competitors are eyeing your customers, ready to pounce with a refinancing offer.

The risk is real for brokers.

After all, you rely on services such as refinancing and home equity loans to boost your profits after an initial transaction has been completed. If your borrower pays off their loan early, these additional services also evaporate, leading to reduced profit margins over time if multiple borrowers follow suit.

But there’s more. Mortgage servicers who purchase your loans on the secondary market aren’t looking to lose money, either. To protect their investment, they’ll institute Early Pay Off (EPO) penalties, which guarantee a minimum return if that loan is paid off in under 4-6 months. These EPO fees can easily surpass $10,000, wiping out any commission accrued and setting a broker back big time.

Fortunately, Camber Marketing Group is here to help. Our team protects brokers using portfolio monitoring solutions that issue alerts whenever recent clients go shopping for a new mortgage.

Our services help to keep you engaged with customers who are seeking to refinance. You will be notified within 24 hours of a credit inquiry, allowing you to intervene before early payoffs occur. A retention letter will even be dispatched on your behalf.

We can monitor all closed loans up to the previous month, providing clarity and actionable data that will ultimately protect you from shelling out for early payoff penalties.

Not only that, but early intervention may be critical to saving a customer from hidden fees that they are blissfully unaware of, simply because they were sold a line from a competitor.

As always, it’s important to keep in mind that happy customers who feel financially secure are ultimately beneficial to your business and bottom line. Remember: the likelihood of selling to an existing customer in the future is far greater than selling to prospects. Striking that happy medium and making business decisions that are mutually beneficial to all parties is the key. And Camber Marketing Group can help.

Reach out to our team today, protect your earnings, and never lose another loan.

3 Questions to Ask Yourself as a Loan Officer in 2021

May 6, 2021
Want to have a great year and become a successful loan officer? Start with asking yourself these 3 questions:

  1. How warm are my leads?

A prospect reaching out to your business seeking information is the warmest lead you can receive. Inbound lead calls give you a competitive edge because your ideal customer is already on the phone!  Now, it is up to you, the Loan Officer, to Read more

Millennials are dominating home loan refinance

February 22, 2021

2020 brought a lot of new realities into our lives – one of them being ultra-low mortgage rates.

With national mortgage refinancing rates hovering at record lows, many millennials have been taking action to lower their monthly payments and see significant savings long-term. According to the latest *Ellie Mae Millennial Tracker, refinance activity climbed to 45% of all loans closed by millennial borrowers Read more

17.8 Million homeowners RICH with equity

February 11, 2021

According to Attom Data Solutions 17.8 million residential properties were considered equity-rich in Q4 of 2020.

To put this into perspective, that is one in three of the 59 million mortgaged homes nationwide now considered equity-rich. Equity-rich means that the combined estimated amount of loans secured by these properties was 50% or less of their estimated market value. A continuous rise up from 28.3% the previous quarter and 26.7% the year before. Read more

Refinance Activity up 105% over last year

December 21, 2020

The Mortgage Bankers Association has reported that after two weeks of decreases in mortgage applications, applications just increased 1.1% during the week of December 6-11, 105% higher than this same week one year ago. Mortgage rates have now set a 15th record low for 2020. Read more

Record Originations in Q2

September 23, 2020

There has been a record $1.1 trillion in first lien originations in the second quarter of 2020 alone. These record breaking numbers have tested mortgage professional’s capacities in ways they haven’t seen before, but Read more