Direct Mail Study Shows Possible Mortgage Turnaround Ahead

The decline in the number of direct mail marketing pieces sent out by mortgage and home equity loan originators is leveling off, a study by Mintel Comperemedia said. After more than two years of declines, for the six months between December 2008 and May 2009 the monthly average number of pieces sent out has been flat. Mintel said lenders sent an average of 38 million direct mailings per month during the period; approximately 31 million solicited mortgage loans and 7 million were for home equity loans. Still, Mintel noted that in the first quarter of 2009, the volume of mortgage and home equity direct mail solicitations fell nearly 84% from the volume in the first quarter 2007. Stephen Clifford, vice president of financial services for Mintel, said, "Many experts believe housing is stabilizing, based on indicators such as rising consumer confidence, more housing starts and increased existing home sales in recent months. The leveling off of home loan direct mail is another indicator that America may be reaching the floor of this downturn in the housing market."