How your personal data can be used to target mortgage offers


Your personal data is pretty much everywhere these days, and while there are strict laws regarding how lenders can use this information to generate mortgage offers, they have a little more flexibility in using your information. publicly available to target existing loan products to you. Sandeep Kharidhi, Managing Director of Data and Analytics Platforms at Deluxe, recently told Bankrate how his business-to-business (B2B) driven company is helping lenders streamline their offerings and what the future might look like. of the use of personal data in the mortgage industry. The conversation has been edited for length and clarity.

Can you tell me a bit about your business and its work in the mortgage industry?

In general, at Deluxe, we help companies deepen their relationships with their customers through reliable technology solutions. At the heart of this are our data solutions. We have a wide range of data assets that our clients leverage, including regulated and unregulated data. Our clients leverage these datasets both to acquire new clients and to maintain and grow the existing relationships they have.

What does this mean for consumers?

We focus on the B2B aspect. We advise our clients – banks, mortgage companies, credit agencies, etc. – to ensure that the needs of consumers come first. Understand what loans they currently have, what’s going on with their property, and tailor the loan offer appropriately.

Now is a great time for borrowers to consider options, like converting to a 15-year mortgage. It could be a simple rate and a term repayment. If there is a home equity loan or a subordinate lien, would it still be a good idea for the consumer to cash out? They could consolidate and cash out while ultimately saving money.

Because of our B2B orientation, how do we talk to the consumer about it? These are the types of things we help lenders look at, but consumers should look at their options as well. Because they’re on a 30-year mortgage, don’t just look at the other 30-year-olds. The other thing is that a lot of our clients are focused on rate and term refinances, that’s understandable, because it’s so easy. We are starting to see more interest in cash refinances as well as buying mortgages.

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

First and foremost, the way we advise our clients, the data lenders, is by telling them to better understand consumers. The last thing you want to do is send someone an offer that doesn’t qualify because you’ve created a poor customer experience.

Once you’ve identified the audience, you can leverage additional data to contextualize the offering. If the borrower is already on a 15-year mortgage, you don’t need to spend the time educating them on the benefits of the 15-year mortgage. On the other hand, if the borrower has a 30 year mortgage and you see that he is rich and has no other debt, you can assume that he can afford the 15 years and you can. educate him.

The data helps you understand eligibility and audience, and then it helps you personalize the offer.

What is the future of data in the mortgage industry? What will it take for more data to be used to refine loan offerings?

Consumers would benefit from knowing that a potential lender is looking at their creditworthiness, information about their property, their payment history, the lender they are with today. What is the value of their house? What is the price trend and the property tax trend? Is there an HOA? If this is an existing customer, identify what can help with retention. If the home has gone up a bit and the consumer has no non-mortgage debt, now might be a great time for the lender to make an offer.

As consumers, our expectations are increasing. We are more and more impatient. We want it all now without much effort. In this regard, I believe that data and digital capabilities will continue to evolve. Data is going to be a centerpiece. 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, could the lender leverage other data?

Is the accommodation vacant or occupied? Rather than putting the onus on the consumer to prove this, could they take advantage of streaming data? If there is streaming TV six to eight hours a day, someone is living there. It’s not happening in the mainstream today, but that’s where I see it going.

Given the lending space and the fact that this is a financial product, I always expect there to be regulatory pressures and privacy concerns that lenders avoid. But action is taken, there are some products for example payment verification where you don’t need to upload your documents. This stuff is on the increase, but even if we get to a point where it says, “Dear Sandeep, your offer is going to be…”, it’s going to take proper disclosure. Even if the financial calculations are good, the consumer will have to understand what is in it. You must make sure that the consumer is aware of these additional conditions.

What else should people know?

Even though I’m a data-driven marketer, I’m a consumer first and foremost. As a consumer, we need to know what data exists about us. It can be as simple as regularly checking your credit report with credit reporting agencies and understanding what data lenders are using. Being aware goes a long way and if there are any inaccuracies reporting it to the companies that have this data or to the lenders who use it. Nowadays, there are a number of consumer protections that require these organizations to provide information about how this data was collected or, if it is inaccurate, to take steps to correct it.

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