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How Should Mortgage Marketers Prepare Originators To Handle Record Refinance Demand?
When refinance application volume is high, it’s important to follow these three best practices to make sure your team gets the most out of the demand.
1. Automate Client Communications
No matter the scale of loan volume, each individual prospect expects a steady exchange of information from their lender. The best way to manage regular communication with current and prospective clients is by deploying automated messaging. Lenders should consider sorting their contacts into a series of segments, based on intent and urgency, ranging from hot to cool. Hot contacts should receive communications the most often. The rate of communications should depend on which milestone a contact has achieved.
Operational efficiencies could be a hurdle, but by keeping clients informed, a lender can set appropriate expectations among clients. No matter where borrowers are in a lender’s pipeline, prospective borrowers need to be encouraged to stay patient but remain organized. Processors, underwriters and compliance officers will benefit by assisting the most prepared clients first. The more prepared your borrowers are with documentation, and the more aware they are of lenders' requirements and needs, the more efficiently the transactions can be managed. In a high-demand market, efficiency will be directly connected to profitability.
2. Promote Benefits Of Rate Lock Extensions
Due to immense growth of refinance loan volume, it is likely impossible that lenders will be able to effectively manage every refinance application with the same speed. The worst fear for many homeowners who refinance is losing out on low interest rates because their rate locks expired before they were able to move forward with the loan processing. Rate lock extensions can be used proactively to protect borrowers from experiencing negative results from interest rate fluctuations that could occur before their loans officially close. Rate lock extensions allow borrowers to maintain the interest rates secured at the time of their applications for an extended, and clearly published, duration of time. Rate lock extensions are usually a paid option for borrowers, but during the refinance surge, lenders should consider offering rate lock extensions at no additional cost to borrowers. Locking rates longer periods gives lenders the opportunity to manage operational efficiencies and maintain steady flows of application reviews.
3. Continue Generating Demand
Even if current refinance volume seems unbelievable, this is not the time to go dark or slow down. By continuing to generate steady demand, lenders can ensure pipeline stability in the second half of 2020.
Look to all channels of refinance lead generation, including marketplace solutions and referrals. Also continue to nurture past clients to secure repeat business in the future. A strategic digital marketing approach, inclusive of email marketing, social media marketing, content marketing, digital advertising and lead generation, can help lenders acquire and retain customers, strengthen relationships with new and current clients and establish a healthy pipeline for now and in the future.
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