Are You Using Data?
Data-driven decision-making is still a huge buzzword for businesses. But what types of data make sense for mortgage brokers? And where do they get it?
Mortgage brokers can use three main data types to build relationships with current and potential customers: national, local, and personal. Here are our tips to ensure you’re using that data wisely.
This type of data is the big-picture stuff you might see on the news. Some examples are national trends in housing prices, mortgage rate trends, types of houses most in demand, and the areas of the country seeing either growth or decline in prices or demand.
You can find this data easily. The National Association of Realtors is an excellent resource for up-to-date and historical data. The Federal Housing Finance Agency provides aggregate data about mortgages each month. And Freddie Mac presents research on housing and consumer opinions. There are also options to purchase mortgage data, but the resources listed here provide data at no cost. Depending on your business size, subscribing to a paid data service might be a good option.
You can use the free or paid national data sources to narrow data by state or metropolitan service area. Or you can go to your state government for the data they have tracked on mortgages and home values.
You will probably want to supplement this data with information you gather from your network because these data sources consider what has happened. Your network of realtors can tell you what they hear from the people they show houses to and the types of houses they see enter the market. This data will be more anecdotal, but it will also be more forward-looking.
This data represents the information you have gathered on your borrowers. When did they buy their house? Who have they referred to you? What personal details did you gather while working on their loan?
If you’re using a customer-relationship manager to keep track of these details, you can mine it for groups of former borrowers who fit specific criteria.
How Can You Use This Data?
One of the most powerful ways to use this data is to combine it. For example, pull a list of former borrowers who might be interested in refinancing. Use local and national mortgage data to create messaging that lets them know why now is the time to refinance and how you can help. (So many borrowers never think of using a broker for their refinancing needs, so reminding them that you can help with this, not just a purchase loan, will be compelling.)
Data can also guide your marketing efforts. If refinances are dropping (common as rates rise), you can create marketing or social media posts explaining why refinancing in a rising rate environment might still make sense. Or you could focus mainly on home buyers until rates become more attractive for refinancing.
Data is a powerful tool, and although there are some expensive data sources, mortgage brokers at all levels can take advantage of free national, local, and personal data to grow their businesses and provide great service to borrowers.
Get more ideas on how to grow your business on EPM’s blog.
National Association of Realtors, Research and Statistics:
Federal Housing Finance Agency, National Mortgage Database Program:
Freddie Mac, Housing and Economic Research:
Equity Prime Mortgage LLC NMLS# 21116. www.nmlsconsumeraccess.org
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