In a galaxy far, far away ... (camping in the Utah high country desert.)
A band of brothers set off for our annual camping, motorcycle-riding, fly-fishing extravaganza. These are my ‘brothers-in-arms’ ... a few close, life-long friends and a couple of amazing siblings.
The destination, the San Rafael Swell.
This is what summer is made of ... camping with your peeps, and exploring the backcountry.
I’m speeding along a desert ridge with the sun setting on my back, the wind in my face and bugs in my teeth ... surely as a result of grinning from ear-to-ear thinking about the shenanigans and great conversations from the night before.
In between playing in the wilderness, and cooking over a real fire, we all get to catch up with each other.
The night before, my friend Josh was telling us the story of the home they bought. He and his lovely wife Danielle, are self-employed. Josh and his amazing wife Danielle design and build pools with the most amazing water features you have ever seen. Rock-wall waterfalls, rock water slides, grottos, etc.
To call them ‘pool contractors’ would be a gross understatement. This couple can create a tropical paradise in your backyard. They are modern day artisans. Their projects come together in the open air. They require decent weather to be the most productive at their craft. We were lucky he could break-away for some fun.
As the story goes, Josh and Danielle happened upon an amazing piece of real estate they wanted to purchase, they had limited bandwidth to deal with the reality of buying a home during their busy season. Their company does great, and they have plenty of money in the bank. The trouble is, wet concrete won’t wait while you do your taxes, an extension is generally an option for self-employed contractors that are slammed in the spring.
So they opted for an ‘Alternative doc’ loan. They printed up a few months worth of bank statements to prove their income and wrote a check for 20% down.
I’m a nerd. I’m always filtering bits and pieces of these stories through the ‘consumer data filter’ in my head. I’m pretty good at turning it off and enjoying the present, but I’ll always recount the conversations that have relevance to the current market conditions.
He goes on to tell us he’s paying 7.75% on a $520k loan.
This is the world we live in. Josh explained it like this, “Guys, we found our dream house. We had to have it, and we secured a contract for an amazing deal and then the appraisal came in for $100k higher than the offer. We figured we’d get the deal done, and refinance the loan a few months later.” (Nearly a year has passed since.)
Josh and Danielle’s home buying adventure is not a unique case. We see this every day in our data. Tens of thousands of self-employed borrowers are accepting high-interest rate loans, just to ‘get the deal done.’ Some of them could definitely have better terms. Sorting those out is what we like to do.
Deals like these are of particular interest to me because it’s a matter of creating a sustainable mortgage marketing campaigns for our clients.
These are fully qualified loans to self-employed borrowers. They’re not exactly ‘slam dunk deals,’ and for that very reason, they’re getting done for much better margins. These loans can be done at margins that match the typical purchase shop.
If you’re going to invest in any part of your precious operational resources to processing refinance transactions, wouldn’t it make sense to also target a segment of the refi market that won’t evaporate after a 30 basis point swing in the bond market? In Josh’s case as well as tens of thousands just like him, he’s going to be able to get better terms even if bond yields are much higher than they are now.
The other segments are within the Non-QM space. There are tens of thousands of homeowners that did a cash-out refinance. The risk premium for Non-QM cash-out refinance transaction is as high as 75 basis points to the note rate, (compared to a rate/term with the same lender.) In this case, the bond market could worsen, and you could still refinance the Non-QM cash-out transactions a year later.
These are a few examples of refinancing trends that we are seeing that are structural in nature, rather than rate sensitive. Needling these opportunities out can feed a mortgage shop with perpetual refinance business at higher margins than streamlines. Join the discussion with us to dive deeper into these and other trends that we are seeing in the market today.
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In a galaxy far, far away ... (camping in the Utah high country desert.)
I just wanted to give a shout-out to our team and all the MonitorBase fans! It was you that made this distinguished honor possible. MonitorBase has been selected as one of HousingWire's 2019 class of HW's Tech100 winners! See us in the April 2019 issue of HousingWire Magazine or Click Here.
The mortgage industry's adoption of SoftPull instant credit check and prescreened email offers incorporated into our core database monitoring system has made this a truly unique value proposition for the mortgage professional.
In the past 30 days, we are seeing a significant increase in mortgage inquiry leads. Inquiry lead alerts are up 30% compared to the past 6 months average.
It is normal to see an increase in mortgage activity in early spring as the home buying season picks up but we are seeing a larger than normal increase and that many of these credit inquiries are being generated from consumers looking to do some type of refinancing.
Keep a close eye on your Inquiry Alerts, there are refinance mortgage lead generation opportunities coming out of the woodwork as well as an increase in new homebuyers.
This is also a good time to update your monitored prospect list if you haven't done so recently.
Get started with Database Monitoring Alerts
How to upload prospects
How often should I update my monitored database?
We've all heard the old sales wisdom: "Success leaves many clues." With trial and error, we often deduce what is successful. Unfortunately, some of us will suffer an empty bank account in the process. In our business as a data and analytics solutions-provider to the mortgage industry, we do a vast amount of research and competitive analytics about the mortgage lead generation process. We witness successes … and failures … on the battlefield every day!
Fishing for deals in a crowded marketplace
It’s mid-winter, as announced by the snow-covered banks of the river, and the crisp scents. The sun just edged over the nearby mountain range to reveal the river’s territorial command. Much life awakens to begin the day’s labors … and lessons. Streaming across the screen of my mind is a view of that shy, alpine tail-water I earlier discovered. What I like to call my, “secret fishing hole.” Not because it’s unknown to other anglers … it is … but because its many opportunities are not known. These are its secrets.
Last week we announced a technology giving mortgage companies and their clients access to an instant credit pre-qualification through a soft credit pull right on their mobile device.
Do you think you could add value to your Agent relationships if you could refer them home sellers? Do you know who is gearing up to sell their home? We do.
What if you knew who was getting ready to purchase a home, refinance, or make a move in the near future before anyone else? What if your sales team could reach this exclusive, high-quality, high-converting lead source before your competition even knew about it? What if you could put the marketing and outreach on autopilot, letting it drive inbound interest to your loan officers on a daily basis?
We are proud to announce the addition of email delivery for prescreened offers of credit within the MonitorBase mortgage lead generation platform! We now have the functionality to deliver timely offers of credit through both direct mail and email, personalized to the individual loan officer.
One of the greatest direct-to-consumer performers in the history of the mortgage industry has been the refinance boom we’ve enjoyed since 2008. Our “Elvis,” if you will. But many originators think it’s dead. MonitorBase doesn’t. Here’s why …
A significant amount of MonitorBase’s resources are invested in collecting and analyzing consumer credit behaviors. We’ve uncovered some we think you’ll find interesting.
No offense intended, but when it comes to past clients (unless they’re your mother), they probably don’t have your picture on the mantel of the home you financed for them.
With volatile interest rates, increasing home prices, and a lack of inventory, first-time homebuyers face many challenges in today's housing market. While the big banks have all but exited the retail mortgage lending space, the gaps left to service these would-be homebuyers are quickly being bridged by independent mortgage bankers all across the country.
Jane and John are great parents. They took their kids on 3 vacations this summer: Disneyland, camping in the mountains, and grandma and grandpa's house. Jane and John have been busy! It has been a super fun, super productive summer. At least as far as vacations go.
According to a Q1 2017 equity report by Corelogic, "Homeowners equity increased by $766 billion over the last year." Just last month (June) 50% of refinance transactions were cash-out!! Whether it's for a debt consolidation or home improvement, cash-out transaction are hot and steamy this summer!
Text to pre-qualify is now available to all MonitorBase users using our SoftPull Instant Credit tool! Here are a couple examples how you might use this.
When analyzing a sample of predictive alerts over the past year, we found that the conversion on predictive produced an average cost per closed loan of $207, based on alert fees.* The response rate was 4% for inbound calls. As expected, the inquiry alerts have a higher conversion, with a cost per closed loan around $117 on average.
The Problem: In October 2015 the CFPB issued an executive summary spelling out new reporting requirements. Beginning in January of 2018, lenders will be required to report much more detail per transaction including: points and fees, borrower-paid origination charges, discount points, lender credits, and loan originator identifier.
Let's take a look at today's mortgage originator: With an average age of around 54-56 years old, multiple long lasting relationships with referral partners, and 10+ years experience, they have plenty of core business to keep the lights on, even during market ups-and-downs.
A common problem in any organization is getting the compliance department and the sales department to share common goals and work synergistically. The sales organization in any mortgage company is typically in a consistent state of change especially as the consumer evolves and Millennials grow to the age and circumstance to buy a home. While the consumer evolves, so do the means by which consumers become educated on the numerous choices they have to qualify for and secure mortgage funding. New technologies that lenders employ to take advantage of these consumer trends can create new marketing risks. New marketing tools create risks to lenders, and, to make matters increasingly difficult, the Consumer Financial Protection Bureau (CFPB) is heavily involved in overseeing and auditing lenders on marketing processes, systems, and the resulting messaging. Additionally, with heavy oversight from the CFPB on credit reporting agencies, mailing offers of credit to consumers on prescreened lists is a hot topic of discussion among mortgage lenders.