Sales Boomerang Releases Mortgage Market Opportunities Report for Q1 2022 | National

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The data underscores the opportunity for lenders to focus their resources on buying and owning opportunities

WASHINGTON, DC, April 18, 2022 (SEND2PRESS NEWSWIRE) — Sales Boomerang, the mortgage industry’s premier automated information and engagement system for borrowers, today released its latest report on mortgage market opportunities. The report for the first quarter of 2022 showed an increase in purchase and home loan opportunities, which could help lenders offset dwindling refi volumes.

methodology

The Mortgage Market Opportunities Report draws on Sales Boomerang system data to identify market opportunities relevant to today’s borrowers and lenders. To create the report, Sales Boomerang reviewed data from more than 170 residential mortgage lenders, who use its borrower information and retention tools to monitor millions of customer and prospect records. Sales Boomerang then calculated and compared the aggregate frequency that these contact records triggered alerts on loan opportunities, prescribed scenarios, and risks and deductibles in Q4 2021 and Q1 2022.

Key Results*

Sales Boomerang’s loan opportunity alerts identify the contacts in a lender’s database who are actively seeking a mortgage loan or who could benefit from a new mortgage loan. Across the sample group, the frequency of each alert type in Q1 2022 was as follows:

* Mortgage Inquiry Alert: 4.53% of contacts monitored (up 2.49% from Q4) A customer or prospect has made a purchase from a competitor in the last 24 hours.

* EPO Alert: 2.54% of contacts monitored (up 38.04% from Q4) A customer or prospect whose loan was completed ≤ 6 months ago has made a purchase from a competitor in the last 24 hours.

* Credit Improvement Alert: 1.77% of contacts monitored (up 55.26% from Q4) A customer or prospect improved their FICO score.

* New listing alert: 0.85% of monitored contacts (up 32.81% from Q4) A customer or prospect has put their home up for sale.

* Equity Alert: 9.13% of contacts monitored (up 6.04% from Q4) A customer or prospect’s equity has increased.

* Rate alert: 4.33% of contacts monitored (down 14.60% from Q4) The interest rate on a customer’s or prospect’s existing mortgage is significantly higher than current rates.

Sales Boomerang’s Prescribed Scenario Alerts not only analyze whether a consumer could benefit from a particular type of loan, but also whether the consumer is creditworthy to apply for financing. This additional layer of information makes Prescribed Scenario Alerts some of the highest revenue generating ones available to mortgage lenders today. The frequency of each alert in Q1 2022 was as follows:

* Cash-out alert: 5.25% of contacts monitored (down 6.75% from Q4) A borrower is creditworthy and has built up enough equity to tap the cash in their home.

* Interest rate and maturity warning: 4.93% of contacts monitored (down 50.95% from Q4) A borrower is creditworthy and can benefit from current interest rates for a refinance.

* FHA MI Removal Alert: 10.48% of contacts monitored (down 25.20% from Q4) An FHA borrower has exceeded 20% equity and is eligible to remove mortgage insurance (MI).

For a subset of lenders that maintain servicing portfolios, the frequency of risk and retention warnings was as follows:

* Risk and Loyalty Alert: 32.87% of contacts monitored (up 5.42% from Q4) A customer engages in one or more of 15 lending activities that could jeopardize their loan under management

Analysis*

* Mortgage inquiry, EPO and new registration notifications increased in the first quarter as consumers actively enter the mortgage products market. As spring buying season kicks off, lenders need to be careful in their efforts to retain borrowers, especially those looking to avoid an early repayment penalty.

* Despite the rise in EPO warnings, both price and price-and-maturity warnings fell in the first quarter, another indicator that consumers are looking to buy rather than refinance. Of the warnings that decreased in frequency in Q1, interest rate and maturity warnings showed the biggest change, confirming the long-awaited slowdown in the funding boom.

* Slow is a relative term, however, as stock warnings increased for the second quarter in a row. As homeowners continue to build equity, lenders should continue to educate borrowers about home mortgage opportunities.

* After a significant drop in risk and retention warnings in Q4, the category saw a 5.42% increase in warnings in Q1. As more and more borrowers are flagged for risky lending behavior, mortgage servicers should continue to closely monitor their portfolios for default risk.

* Credit-improvement alerts posted one of the biggest increases in the first quarter, signaling that more creditworthy borrowers are ready to start buying a mortgage. Experienced lenders will recognize this opportunity to be proactive in their outreach.

“Pundits have been expecting the move to a buy-only market for a year or more, but the market has shifted more slowly than initially anticipated. Our data confirms that the market opportunity is finally tilting toward purchase loans,” said Alex Kutshin, CEO of Sales Boomerang. “However, as the buying market heats up, it will be important for lenders not to get tunnel vision as our data also shows increased opportunity in home lending.”

*Key results and analysis are for informational purposes only. The data presented in the Mortgage Market Opportunities report is historical. Past performance is not a reliable indicator of future results. Sales Boomerang assumes no responsibility or liability for the reader’s use of the key findings or analysis contained in this report.

About Sales Boomerang:

Sales Boomerang transformed the relationship between mortgage lenders and borrowers with the launch of the first automated borrower intelligence system in 2017. The company’s intelligent alerts notify lenders as soon as a former customer or prospect is ready and creditworthy for a loan. As the mortgage industry’s leading borrower retention tool, Sales Boomerang is trusted by more than 170 lenders – including brokers, independent mortgage companies, credit unions and banks – to help build lasting borrower relationships that maximize lifetime customer value. To date, Sales Boomerang alerts have enabled lenders to close more than $150 billion in additional loan volume that would otherwise have gone unnoticed and achieve customer retention rates that exceed industry norms by 3 to 5 times. To learn more about Sales Boomerang and its No Borrower Left Behind™ ethos, visit https://www.salesboomerang.com.

@SalesBoomerang

NEWS SOURCE: Sales Boomerang

This press release has been issued by Send2Press® Newswire on behalf of the news source (Sales Boomerang), who is solely responsible for its accuracy. The information is believed to be correct but not guaranteed. Story ID: 80906 APDF-R8.5

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To view the original version visit: https://www.send2press.com/wire/sales-boomerang-releases-q1-2022-mortgage-market-opportunities-report/

Disclaimer: The content of this press release was not prepared by the Associated Press (AP).

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