One of the challenges for mortgage lenders in this current environment is that many consumers don't think they qualify for mortgage or home equity line of credit (HELOC) when, in fact, they do – thus, many consumers never bother applying. The big question is this: How can mortgage lenders effectively identify and market to these consumers?
The other challenge, of course, is identifying which consumers might present the greatest degree of risk based on their past home purchases and borrowing behavior.
But what if a lender could discover, within a certain degree of accuracy, whether a homeowner is ‘ripe and ready’ for a home equity loan or refinance? Similarly, what if a lender had access to data and analytics that could help it identify individual homeowners who might be ready to move up to a larger home?
Enter CoreLogic's new Homeowner Keys solution, which is designed to give lenders insights into consumer real estate activities. By matching borrower data with property data and running it through analytics, lenders can characterize a homeowner's historical property ownership, home improvement, mortgage activity and transaction behavior over time, thus enabling more targeted marketing strategies and more effective risk management decisions.
CoreLogic claims that with this solution, lenders will be able to pinpoint the most viable prospects and high-value consumers. For example, lenders (or, alternatively, home improvement providers) can identify within a specified time frame the number of mortgage event-related times a homeowner has moved or improved his home, which, in turn, can help lenders determine when a homeowner might be in need of a HELOC. It can also distinguish property investment activity across multiple properties, such as buy-flip or buy-hold patterns. As such, the solution is useful to tax authorities in that it allows them to identify individuals filing for homestead exemptions on multiple properties.Â Â
‘Knowing a potential consumer's current status is a good start, but gaining insight into their real estate activity and behavior over time provides even more intelligence that can help better inform acquisition and retention decisions,’ says Randy Wussler, vice president and product general manager for CoreLogic, in a release. ‘By leveraging the breadth and depth of our property and homeownership data and combining it with our proprietary match logic engine, Homeowner Keys provides actionable insight that not only can improve marketing campaign performance, but can also minimize lender and mortgage stakeholder risk.’
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