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When Rates Rise, Pull the Trigger!

Justin Restaino
Dec 02, 2013

With interest rates currently in a volatile state, one direct marketing campaign continues to deliver results: Mortgage Triggers. Mortgage Triggers are generated when a consumer makes an application for mortgage refinancing or purchasing, and an inquiry is made on the consumer's credit profile. This is an alert that the consumer is actively in the process of seeking a new mortgage. With rates currently where they are, the lender pulling the credit is essentially broadcasting that, assuming they pass credit, the consumer can refinance. Mortgage Trigger data has many benefits, such as you can filter the data to match underwriting guidelines. Filters include, but are not limited to: FICO, loan-to-value (LTV), loan balances, current mortgage type, subordinate financing and many more. Having the ability to drill down to prime prospective clients will allow the company to spend advertising dollars wisely in order to generate the best application and lowest cost per closed loan. The benefit of being a Mortgage Trigger to consumers is quite simple; it gives the consumer choices. With multiple companies advertising to the consumer, they can selectively shop mortgage institutions that appeal to them and actively compare costs, rates and overall help grow the relationship the mortgage company cultivates with the potential consumer. Mortgage Trigger leads and opportunity costs Contact rates are extremely important on any lead source. Trigger leads have one thing that is very different over conventional Web site inquiry leads that are often sold multiple times. When the consumer receives a mail piece and calls the advertising lender, 100 percent of the leads that call will be put in touch with a qualified mortgage loan originator to help them with their questions to turn that contact into an application and closed loan. In contrast, Internet leads are highly used and vary greatly compared to Mortgage Trigger direct mail. At the start when the consumer inquires on a Web site, the loan originator picks up the phone and dials the prospective contact. At this point, there are only two options. The client will either pick up the phone or not. The older the lead is, the exclusivity and the quality of the lead will greatly impact your ability to actually contact the client. The opportunity cost that is calculated by contacts can be greatly influenced by the number of consumers that either pick up the phone or call in directly from your marketing material. Your opportunity cost will decrease greatly with Trigger Mail Marketing as the consumers are calling you directly to inquire about the mortgage you can offer them. Internet lead contact rates will completely depend on the persistence of the mortgage loan originator to call the client until they pick up the phone, often resulting in a less convertible lead because they have been contacted by so many other lenders. Stay competitive; continue closings By leveraging Mortgage Triggers, you can take advantage of your competitor’s broad scale efforts. While Triggers are the best approach you can take now, you must have a strong sales force to handle these leads. These consumers are calling you because they haven’t been sold on their current lender (otherwise they wouldn’t call in). A strong sales-oriented staff will take these leads and convert them to closed loans more efficiently than a more laidback approach. Stay competitive, keep selling the strengths and benefits of your company and stay closing! K. Justin Restaino is vice president of Titan List & Mailing Services Inc. For more than 13 years, he has led Titan’s Mortgage Division, helping lenders of all capacities grow their businesses utilizing targeted direct mail. With a specialized focus in refinance and purchase markets, Restaino has the insight for proper data and mail application for success. He may be reached by phone at (800) 544-8060, ext. 204 or e-mail [email protected]
Dec 02, 2013