Refinance loan marketing strategies to handle record volume

Refinance the mortgage application volumes have skyrocketed to record highs. Favorable interest rates since the start of 2020 have boosted a positive outlook in the mortgage industry, but now mortgage professionals find it difficult to cope with a considerably increased demand. Overall, refinance business is currently at its highest level since 2009, and lenders are striving to manage unprecedented levels of refinance inquiries and applications.

Refi’s current environment

Even before the Fed’s surprise rate cut last weekend, mortgage interest rates were at Lower for 10 years. Last week, the 30-year fixed-rate mortgage offered an average interest rate of 3.29%, according to the Freddie Mac Primary Mortgage Market Survey (PMMS). In response to historically low interest rates, the Mortgage Bankers Association (MBA) was urged to change its 2020 refinancing forecasts. The MBA now indicates a Gain of 20.3% the volume of applications is expected, which could bring total refinancing mortgages to $ 2.61 trillion.

In a recent press release, Joel Kan, Associate Vice President of Economic and Industrial Forecasting, MBA, offered banks and lenders a projection for the housing market in the spring. Kan said“As lenders manage the wave of demands and manage capacity, mortgage rates will likely stabilize, but remain low for now. This, in turn, will support borrowers looking to refinance or buy a home this spring. ”

How should mortgage marketers prepare originators to handle the demand for record refinancing?

With a record volume of refinancing applications, it’s more important than ever to follow best practices to ensure your team is making the most of these rate cuts.

Automate customer communications

Regardless of the size of the loan volume, each individual prospect expects a regular exchange of information from their lender. The best way to handle regular communication with current and potential customers is to deploy automated messaging. Lenders should consider sorting their contacts into a series of segments, based on intent and urgency, ranging from hot to cold. Hot contacts should receive communications more often. The communication rate should depend on the milestone reached by a contact.

Operational efficiency could be a barrier, but by keeping customers informed, a lender can set appropriate expectations among customers. No matter where borrowers are in a lender’s pipeline, potential borrowers should be encouraged to stay patient while staying organized. Processors, underwriters and compliance officers will benefit by helping the best-prepared customers first. The more prepared your borrowers are with documentation and the more aware they are of the requirements and needs of lenders, the more efficiently transactions can be managed. In a high demand market, efficiency will be directly linked to profitability.

Promote the benefits of rate foreclosure extensions

Due to the immense growth in the volume of refinancing loans, it is probably impossible for lenders to be able to effectively handle each refinancing request with the same speed. The worst fear for many homeowners who refinance is losing low interest rates because their rate locks expired before they could go ahead with loan processing. Rate foreclosure extensions can be used proactively to protect borrowers from the negative outcomes of interest rate fluctuations that could occur before their loans officially close. Rate foreclosure extensions allow borrowers to maintain guaranteed interest rates at the time of application for an extended and clearly published term. Rate foreclosure extensions are generally a paid option for borrowers, but during the refinancing push, lenders should consider offering rate foreclosure extensions at no additional cost to borrowers. Freezing rates for longer periods gives lenders the ability to manage operational efficiency and maintain a steady stream of application reviews.

Continue to generate demand

While the current refinancing volume looks incredible, now is not the time to sink or slow down. By continuing to generate steady demand, lenders can ensure pipeline stability in the second half of 2020.

Research all refinance lead generation channels, including marketplace solutions and referrals. Also continue to nurture past customers to ensure repeat business in the future. A strategic approach to digital marketing, including email marketing, social media marketing, content marketing, digital advertising and lead generation, can help lenders acquire and retain customers, strengthen relationships with new and existing customers and to establish a healthy pipeline for now and in the future.

Need to connect with consumers looking for refinancing opportunities?

Using a combination of rich content and borrower resources, DMS connects the right lenders with the right borrowers at the right time to fill pipelines, improve closing ratios, and scale businesses. DMS Consumer Finance^TM is a division of Digital Media Solutions^® (DMS) which deploys a high-touch service, proprietary digital media distribution and sophisticated correspondence engines.

About the Author

An innovative problem solver by nature, Melissa Ledesma is both experienced and passionate about the digital marketing industry. She has held a number of senior positions in the real estate, mortgage, entertainment and digital advertising industries, including Director of Public Relations and Business Development at NJ Lenders Corp. and Director communications and government affairs at the East Bergen County Real Estate Board. As Director of Content and Communications at Digital Media Solutions (DMS), Melissa demonstrates a strategic, creative and tactical approach when managing thought leadership programs and marketing and communications efforts for DMS and its family of brands. She manages all conferences, sponsorships and event execution and plays a central role in creating written, digital and video content for all campaigns. Melissa has always positioned the DMS team as an expert in performance marketing in several industries.

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