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| Niche marketing and narrower demographic targets have increased business for one full-service mortgage lender who claims to be among the nation’s 10 largest government lenders.
Salt Lake City, Utah-based New Freedom Mortgage said it has improved conversion rates over the last two years by using the database marketing services of Intellidyn Corp. New Freedom Senior VP Thomas Wright told MortgageDaily.com, it became “very clear, very quickly that they were able to identify who the converters and responders were in the market.” Boston, Mass.-based Intellidyn founder and CEO Peter Harvey said the traditional lead lists lenders use contain single sources of data, such as from a credit bureau. But Intellidyn houses “more diverse sources of data than any other service provider,” including property deed files and Acxiom files. Harvey told MortgageDaily.com Intellidyn analyzes data such as the most accurate home values, reflecting the appreciation rates in recent years, current mortgage balances, homeowner debt and the available equity the homeowner has to pay off that debt. “We’ve all went through the refinance boom and 30-60 percent of homeowners already refinanced, the reason now (for a mortgage loan) is for cash-out, to pay off debt or for home improvement. Intellidyn has built targeting capabilities to hone in on loan prospects, Harvey explained, “to figure out what situation these individuals are in and why they want cash out.” Harvey said after the analysis, Intellidyn can then tell the lender who to target and what message to use to get them to respond. For example, he said, the company can mine data to see which homeowners carry a first and second mortgage and then create a direct mail piece that relates the borrower’s situation; such as “consolidate your 1st and 2nd mortgage, pay off debts and get cash-out.” “When it relates to ‘you,’ he said, “you are more likely to respond.” New Freedom’s Wright said since incorporating Intellidyn’s services, conversion rates have increased about 35 percent with less operational expense. Harvey explained that conversion rates from traditional mailing lists are generally poor but still get response. “Now you’ve not only spent the money on marketing but the operational expenses handling the response as well,” he said. “With more accurate property data,” he said, “we only solicit people that when they respond are more likely to convert.“ |
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Paula Parisot is a MortgageDaily.com feature reporter and a blogger at CloserBlog.com who has also worked in the mortgage industry. e-mail Paula at: PaulaParisot@MortgageDaily.com |
