Opportunity is there despite decline in mortgage buyers: Report

During these difficult times, mortgage lenders must be proactive in reaching out to borrowers and finding out what consumers’ mortgage needs are in order for consumers to close deals, says Mortgage Relationship Data. A new report from company sales boomerang concludes.

Based on borrower mortgage inquiries, mortgage early payoffs (EPOs), and declines in new home listings in the third quarter, sales boomerang‘s latest mortgage opportunity report outlines potential trading strategies for lenders during a difficult time for the mortgage industry.

Less than 3% of customers received a mortgage from a competitor in the last 24 hours in the third quarter, down 12% from the previous quarter, according to Sales Boomerang. About 2% of his monitored contacts within six months of closing the loan had shopped at a competitor that day, down 11% from the previous quarter.

As consumers ceased to actively seek out new mortgage products, “lenders are increasing their buying opportunities by leveraging sellers’ buy-down strategies to counteract high interest rates that may discourage buyers from making purchases.” may succeed in obtaining ,” the report said.

lessor including United Wholesale Mortgage When rocket mortgage Professional TPOon sale Temporary rate buydown This allows the borrower to receive a lower mortgage interest rate at the beginning of the loan term by using the seller’s concession as part of the payment. UWM rolled out its product in his August and hopes to attract more borrowers who expect an increase in income over the next few years and who have seller concessions to use and want to take advantage of lower interest rates upfront. .rocket launched Similar product in September.

Sales Boomerang reviewed data from over 150 mortgage lenders. These clients use borrower intelligence and retention tools to monitor customer records and identify market opportunities related to borrowers and lenders.


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FICO scores for 6% of monitored contacts improved in Q3, up more than 33% from Q2. This suggests that lenders need to be creative in meeting consumers’ housing finance needs.

“Recent data supports that claim. Borrowers can benefit from variable rate mortgages (ARM) and lenders should be prepared to educate borrowers on the pros and cons of these products,” the report said.

Borrower demand plunged as mortgage demand hit a 25-year low amid continued economic uncertainty and affordability challenges. Next, homebuyers looking for lower interest rates turned to various ARM products to reduce their monthly mortgage payments.

Overall ARM loan share is 12.8% of all applications last week, according to Mortgage Bankers Association (MBA). The 5/1 ARM rate rose to 5.65% from last week’s 5.56%.

According to Sales Boomerang, about 30% of monitored contacts were involved in one or more of 15 credit activities that could jeopardize service loans in Q3, and 40% increase. This meant that more consumers took on unprecedented personal debt and spent elsewhere as the housing market continued to cool.

β€œTo be successful in today’s market, lenders must not only be proactive in reaching out to borrowers, but they must also be more creative in the financial strategies they offer.

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