TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/105753
The pulse Taking the Lead New methods of evaluating conversion rates among online leads are giving originators enhanced insight when projecting borrowers' potential. O riginators are far too familiar with current challenges: tighter credit standards, fewer qualified borrowers, and policy issues, to name only a few. However, the growth in online lending continues to defy market trends, and web-based tools for sourcing leads are a critical component for success. But generating a thriving profile isn't enough in today's competitive environment. Mortgage professionals are tasked with properly evaluating data from potential consumers to ensure they're spending time on the leads that are most likely to turn into a closed loan. How can originators know if they're maximizing their online resources? New findings from Leads360 indicate that projecting a borrower's behavior may depend on just a few, simple statistics. How Does Duration of Employment Affect Conversion Rates? What Factors Make a Borrower More Likely to Convert? 1. Interested in a conventional mortgage 2.10 to 20 years in current job 3.Very good credit rating What Factors Make a Borrower Less Likely to Convert? 1. Poor credit rating 2.Interested in an adjustablerate mortgage (ARM) 3.0 to 5 years in current job How Do Product Choices Impact Conversion Rates? Conventional: Consumers seeking a conventional loan are 412 percent MORE likely to convert. ARM: Consumers seeking ARMs are 54 percent LESS likely to purchase a mortgage. How Do Credit Scores Influence Conversion Rates? Very Good Credit: Consumers with strong credit scores are 36 percent MORE likely to convert. Poor Credit: Consumers with low credit scores are 96 percent LESS likely to convert. 18 | The M Report 10 to 20 Years in Current Job: Consumers going the longhaul with their employers are 81 percent MORE likely to convert. 0 to 5 Years in Current Job: Consumers with fewer years with their employers are 47 percent LESS likely to convert. What Surprising Indicators May Reveal a Borrower's Potential for Conversion? Vermont Residents: Consumers from the Green Mountain State are 276 percent MORE likely to convert. North Dakota Residents: Consumers from the Legendary State are 78 percent LESS likely to convert. How Are Today's Lenders Investing in Online Lead Generation? $642 Million: The amount spent industry-wide for online leads in 2010. $805 Million: The amount spent industry-wide for online leads in 2011. 25.4%: The total increase in industry-wide spending for online leads between 2010 and 2011.