Mortgage Coach NextGen - Opportunity Types

Overview

Audience Based Opportunities (ABO) identify and target borrowers based on their likely needs and benefits, utilizing public mortgage data and calculations from TrustEngine. This approach requires minimal lender-provided information:

• Full Name
• Address
• Email address and/or phone number

Full List of Alpha Audience Based Opportunities

• Home Listed
• Payment Reduction
• Priority Cash-Out
• Cash-Out Potential
• Equity for College
• Mortgage Consolidation
• Term Reduction
• Reverse for Refinance
• Reverse for Purchase
• Purchase Potential
• Investor Potential
• Borrower Check-Up (Annual Review) 

See all definitions

Advantages

• Focuses on borrower benefits for targeted coaching
• Broader coverage than credit-based alternatives
• No FOC required
• Minimal data needed
• Provides enrichment and context with additional borrower, loan, and property information
• Full transparency in data elements used to derive opportunity

All customers

Our new approach to coaching at scale drives towards our mission of getting ahead of the Mortgage Inquiry alert. We layer on data about the borrower to allow for more targeted conversations about their goals and tools that make it easy to present those insights as well as check back in when their goals might change. 

We achieve this by utilizing data sources that layer on information about the borrower, their loan, and their property. The combination of signals allows us to raise options that are specific to each borrower, for instance: 

• A borrower that can benefit from a Payment Reduction, but also has a profile that indicates they are a potential Investor
• A borrower that we know has enough tappable equity for utilization and dependents that are approaching college age
• A borrower that has a home over 15 years old and equity that they could apply towards home renovation or moving up into a new home
   

Customers who are using credit-based opportunities today

ABO avoids reliance on credit data, which has several advantages:

• Addresses increasing credit monitoring opt-outs (15%-30% over the past five years)
• Eliminates the need for a Firm Offer of Credit (FOC)
   

TEP customers who were switched to non-credit opportunities 

Our new approach introduces the concept of enriching borrower opportunities, which means that the data we gather gets applied to the record, even if it was not used for opportunity qualification. This additional information creates a more complete picture of the borrower and is provided anytime we’re able to collect the additional data. 

Definitions of ABO

Home Listed

To identify borrowers who have listed their home
 

Payment Reduction

To identify borrowers who may benefit by refinancing their existing loan into a new one with a lower interest rate. We will use Optimal Blue (Conventional 30yr Fixed rate) to determine a rate delta from the borrower’s current interest rate. The rate deltas were selected based on the potential savings of at least $100/month
 

Priority Cash-Out

To identify borrowers who are more likely to use a cash-out refinance because their profile matches those TrustEngine has identified as higher propensity to convert. 
 

Cash-Out Potential

To identify borrowers who might want/need to perform a cash-out refinance for their specific needs. We are utilizing several different criteria to bucket borrowers into potential cash-out scenarios, like Equity for College, Mortgage Consolidation, and Home Renovation.  

Equity for College 

To identify borrowers who have tappable equity and kids that approaching college age (12-17). 
 

Mortgage Consolidation

To identify borrowers who have 2 or more liens on their property who may benefit by consolidating them into one new mortgage and reducing their overall monthly payment (without exceeding the 80% threshold, which would require MI on the new loan).

Term Reduction

To identify borrowers who may benefit from refinancing their existing mortgage into a new shorter term loan (15yr Fixed) thereby reducing their freedom point and saving money overall, paid in the form of interest on the loan. The underlying logic for this opportunity is that borrowers are more likely to drop to a 15yr term (from a 30yr term) IF the time remaining is no more than a 5yr delta from where they currently stand.
 

Reverse for Refinance

To identify borrowers who may benefit from a reverse mortgage. This specific loan program is limited to borrowers older than 62 yrs AND have sufficient equity in their homes to support the program. There are two potential use cases noted below.

Reverse for Purchase

Reverse for purchase is when a borrower aged 62+yrs is buying a home. They can use a reverse mortgage to qualify for a home if their equity position is generally greater than 50%. With this mortgage, they would have no monthly P&I payments because it is a reverse mortgage. Perfect for retired persons with little income for qualifying.

Purchase Potential 

To identify borrowers who do not currently own a home who can be targeted for purchase opportunities.

Investor Potential

To identify borrowers who might be good candidates to purchase a 2nd or investment property. We utilize Fushia Family Income data and equity availability, along with net worth, to bracket the audiences.
 

Borrower Check-Up (Annual Review) 

To identify borrowers who have a funded date provided by the lender of (by default) one year ago to provide a reminder to check in and ensure the borrower’s goals remain the same and position yourself as a trusted advisor on a regular cadence.