Loan Value Group Launches Marketing and Retention Products
Loan Value Group said Monday it has launched marketing and retention products aimed at building originations and retaining customers to counteract the recent uptick in rates.
The company is working with lenders and servicers to create an education and outreach campaign aimed at furthering consumer loyalty, and, where applicable, affiliate marketing.
“Now that rates are drifting a little bit higher and volume is starting to fall off a little bit, the borrower is constantly being bombarded (by competitors’ marketing),” Frank Pallotta, managing partner, Loan Value Group, told this publication.
“If the borrower is looking around you want them to look at your firm…It’s the path of least resistance (for the consumer) to stay with the current servicer that they’re with. But that being said, if they’re looking elsewhere the current servicer’s not doing a good enough job at staying in front of that borrower the borrower may go to a competitor.”
Losing a borrower, “doesn’t only cost you money in [terms of] the [servicing] asset that is disappearing…it causes you to lose potential revenue down the road when that borrower refinances elsewhere,” he noted.
LVG said its past programs have contact and conversion rates ranging from 78% to 92%, as well as relatively higher pull-through rates and reduced origination timelines.
While some of the company’s past programs, such as one that encourages underwater borrowers to continue making timely payments on their loans, have included monetary incentives at the end of the loans’ terms if the timely payments are made; Pallotta said in the retention and marketing efforts, the refinancing benefit the borrower gets through the Home Affordable Refinance Program, for example, serves as the incentive.