Data Warehouse Staves Runoff by Finding Prospects before They Refi
The downside of the refi boom has been that servicers don't have borrowers in their portfolio long enough to warm up a spot in their database before another lender snatches them away. But Data Warehouse Corp. here has developed a system it says can help servicers keep borrowers in their portfolio by thwarting the competition.
DWC offers lenders a turnkey lead generation and loan acquisition service, handling everything from list selection to direct marketing, feeding the lead directly into the lender's system only after it has passed successfully through its automated underwriting system. The system is built around the concept of a prospect database and DWC calls it CAM, for Customer Acquisition Management.
To build this prospect database, DWC uses two primary sources of information. The first is the servicers portfolio, which is then overlaid with credit bureau data.
When an inquiry shows up an existing customer's credit file, the CAM system checks to see if it is coming from a competing mortgage lender. If so, DWC, working on behalf of the servicer, goes into action.
When a customer from a lender/servicer's portfolio makes an application with another mortgage lender, that customer becomes a prospect, which is then fed back into the origination system for automated underwriting.
Gene Devine, senior vice president for DWC, recently presented the CAM system to attendees of Thomson's 6th Annual Mortgage Technology Conference in Miami. He explained how CAM integrated with automated underwriting created impressive cost savings for lenders.
DWC research indicates that lenders who combine CAM with AUS can decrease their lending cycle time, from committed application to funded loan, by 28%. In addition, Mr. Devine said margins could be increased by 22 basis points. He told the audience that DWC clients were capable of saving homeowners, on average, $260 over the course of closing the new loan, making it possible for them to snatch this business away from any competitors out to steal from their portfolios.
DWC is currently marketing its customer acquisition management solution to lenders and servicers.
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