Home Point tries to solve mortgage brokers' retention problem
With retaining and maintaining customers being a perpetual challenge for independent mortgage brokers, Home Point Financial launched a technology platform to bolster recapture rates.
Consumers face a multitude of options when choosing a mortgage. The Customer for Life program would help keep borrowers in touch with their mortgage broker for all their loan needs. That connection could increase potential for future business.
"The transactional nature of the mortgage business forces mortgage brokers to stay largely focused on the next loan, the next customer, but sustainability of existing business is more important to mortgage brokers' growth than anything else," Phil Shoemaker, chief business officer at Home Point Financial, said in a press release. "The Customer for Life program creates stability and long-term value for mortgage brokers."
In a study from April, Home Point found only 14% of loan officers at independent mortgage brokerages recapture business from past customers over a six-month period. Comparatively, leading consumer-direct lenders have a 70% recapture rate.
"Customer for Life was a chance for us to throw out credit triggers and payoff triggers because they don't work, and create something that actually turns real applications into real loans for brokers, helping them grow a customer base that they can stay connected to."
The program's technology uses data touchpoints for the mortgage broker to leverage and proactively reach out to the borrower. The primary trigger would be any direct activity the consumer makes with Home Point. Once past that, the program looks at escrow analysis and provides a proprietary breakdown of their customers' interest in other financial areas, such as personal loans, alternate financing, homeowner's insurance and utility services.
Home Point is a wholesale lender that retains 100% of its servicing.