How your personal information can be used to target mortgage offers

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Your personal information is almost everywhere these days, and while there are strict laws on how lenders can use this information to create mortgage offers, they have a little more flexibility to use your public information to target existing loan products at you. … Sandeep Haridi, general manager of data and analytics platforms at Deluxe, recently spoke to Bankrate about how his business-to-business (B2B) company is helping lenders optimize their offerings and what the future of personal data might look like. mortgage industry. Conversation edited for clarity.

Could you tell me a little about your company and the work it does in the mortgage lending business?

Overall, at Deluxe, we help businesses build customer relationships with reliable technology solutions. This is based on our data processing solutions. We have a wide range of information assets that our clients use, including regulated and unregulated data. Our clients use these datasets both to attract new customers and to maintain and develop existing relationships.

What does this mean for consumers?

We are focused on the B2B aspect. We advise our clients – banks, mortgage companies, credit agencies, etc. – to pay attention to the needs of consumers. Find out what kind of loans they are currently receiving, what is happening to their property, and adapt the loan proposal accordingly.

This is a great time for borrowers to consider options such as converting to Mortgage for 15 years… This can be a direct rate and a ref. If there is an existing home security loan or ancillary lien, would it still make sense for a consumer to cash out? They could have teamed up and cashed out, but ended up saving money.

Since we focus on B2B, how do we communicate this to the consumer? These are the things that we help lenders pay attention to, but consumers also need to consider their options. Since they are on a 30 year mortgage, don’t just look at other 30 year olds. The other part is that many of our clients are focused on refinancing at rates and timing, which is understandable because it is very simple. We are starting to show more interest in cashing refinancing as well as buying a mortgage.

Is the data used to generate specific offers, or simply to target existing offers to specific borrowers?

Above all, we advise our clients, data lenders, to ask them to better understand consumers. The last thing you want to do is send someone an offer that is inadequate because then you’ve created a poor customer experience.

Once you’ve defined your audience, you can use additional data to contextualize your offer. If the borrower already has a 15-year mortgage, you do not need to spend time explaining to the borrower the benefits of a 15-year mortgage. On the other hand, if the borrower is in 30 year mortgageand you see that they are wealthy and they have no other debt, you can assume that they can afford 15 years and you can educate them.

The data helps you understand eligibility and audience, and then helps you tailor the proposal.

What is the future of data in the mortgage industry? What will it take to use more data to refine loan offers?

It would be useful for consumers to know that a potential lender is looking into their creditworthiness, information about their property, their payment history, which lender they are working with today. What is the value of their home? What is the trend in property prices and taxes? there is HOA? If this is an existing customer, determine what can help with the retention. If the value of the home has risen slightly and the consumer has no non-mortgage debt, now is the time for the lender to make an offer.

As consumers, our expectations are constantly growing. We are becoming more and more impatient. We want everything now effortlessly. In this aspect, I believe that data and digital opportunities will continue to evolve. The focus will be on data. Instead of the lender asking the borrower to prove that the house they are in is their primary residence, rather than placing the burden on the consumer, can the lender use other data?

Is the house empty or busy? Could they use streaming data instead of placing the burden of proof on the consumer? If TV is streaming six to eight hours a day, then someone is living there. This is not happening on a massive scale today, but I think it will.

Given the lending space and the fact that it is a financial product, I always expect there to be some regulatory and privacy concerns that lenders shy away from. But steps are being taken, there are products for confirming payment, for example, where you do not need to upload documents. There are more and more such things, but even if we get to the point where it says: “Dear Sandeep, your proposal will be …”, appropriate disclosure of information will be required. Even if everything is in order with financial calculations, the consumer will have to understand what it contains. You must ensure that the buyer is aware of these additional terms.

What else do people need to know?

Although I am a data-driven marketer, I am primarily a consumer. As a consumer, we need to know what data exists about us. It can be as simple as checking your credit report from lending agencies on an ongoing basis and understanding what data lenders are using. Awareness is essential, and if there is any inaccuracy, point it out to the companies that have the data or the lenders using the data. Today, there are a number of protections that consumers use when these organizations are required to provide information on how this data was collected, or, if it is inaccurate, take steps to correct it.

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