For any mortgage company with a loan portfolio, there is one solution that you have to implement if you are not already. Monitor your customer portfolio for new credit applications called triggers. Here are a few things to consider:
- One vs. Multiple Credit Bureaus: If you use just one of the 3 credit bureaus (Equifax, Experian and Trans Union), you will only be identifying 75% of the available triggers. By adding a second bureau, you will find 95% and by using all 3 bureaus you can reach 100%. Depending on the loan types and profitability of your loan, you may want to use more than one credit bureau for your monitoring.
- Should you use Auto and Personal Loan Triggers?: Obviously, you should monitor any new mortgage applications that your customers trigger for, called a Mortgage Trigger. But, what about other loan types? Auto or Personal loans? These are people who are looking for credit and oftentimes they will refinance their mortgage shortly after taking on a new auto or personal loans. Definitely consider monitoring and testing your results for other trigger types.
- Use Social Media, Email and Telephone: With credit triggers, since these are your customers, you probably have the email and phone numbers for most if not all of these.. Also, you know they applied for a loan within the last 24 hours so the clock is ticking and they are in the market. Onboard them on social media like Facebook and get ads in front of them immediately. Call them and email them as well. These are inexpensive methods which will greatly increase your success.
Credit triggers are a valuable retention tool in the mortgage industry. Take advantage of them!