Mortgage Daily Logo
mortgage news from industry experts

Traditional Advertising Not Always Best Way to Reach Many Groups

Traditional Advertising Not Always Best Way to Reach Many GroupsEconomist discusses study about how some minority groups get mortgage information

February 20, 2004

By SAM GARCIA

Reaching some ethnic groups is a potential gold mine for originators. However, one of the top U.S. mortgage economists says traditional forms of communication must be replaced with more unconventional media.

During an interview about the mortgage market with Doug Duncan, the chief economist for the Mortgage Bankers Association of America, he pointed to a 1998 study that revealed roughly a third of prospective borrowers do not compare competitive quotes when shopping for a mortgage. “Thirty-one percent of people never talk to more than one” contact during the home buying process, he said.

That is a pretty powerful position for a loan originator to play from. So how does one become so prominently placed?

Communication.

But not the traditional channels of communication.

Duncan, who was attending the group’s annual servicing conference in San Diego, Calif., noted that the study was conducted to determine what communication channels are used by different ethnic groups. “You need to understand how people communicate.”

The survey of 1000 borrowers showed that “Hispanics were more than twice as likely as any other racial or ethnic subgroup to get their primary information from family,” the Washington D.C.-based economist said. “The family institution is very important in the transmission of information about where to get your mortgage.”

Mortgage banker Wells Fargo Home Mortgage is capitalizing on the Hispanic market — recently announcing its plans to add 100 loan consultants in Los Angeles. The company said the area is the fastest growing market in which it operates, and Hispanics make up around half of it. Wells noted that this growth has been fueled by its decision to accept the Mexican matricula card as valid identification two years ago.

The study by the Mortgage Bankers indicated that African Americans were not using the newspaper to find mortgage information, Duncan said. “They were likely to get it from housing fairs and from television.”

In addition to ethnic groups, communication with different types of family structures should also be analyzed, according to Duncan. He said U.S. census data indicate that single female heads of household with children make up a big share of the population but a small share of homeowners.

Duncan noted how one rental property builder capitalized on this segment by addressing their needs specifically (i.e., attached garages with locking doors; gated community).

The builder reportedly said, “the fastest growing demographic for us is women 35-45 with kids. We can’t build them fast enough.”

Duncan said the study will be repeated soon.


Sam Garcia has been in mortgage lending since 1980, and is publisher of MortgageDaily.com. He also owns and operates CloseNow.com, a real estate portal site.email: SamGarcia@MortgageDaily.com

Mortgage Conference News | Conference Calendar | Webinars
News about mortgage-related conferences and schedule of mortgage conferences,
mortgage Webinars and other mortgage events.

upcoming events: October | November | December | full calendar


Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION