MReport April 2022

TheMReport — News and strategies for the evolving mortgage marketplace.

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26 | M R EP O RT EXPERT INSIGHTS Louis Zitting, Founder and CEO of Monitorbase, discusses ways to tap into your database to find those overlooked gems. R efinance to purchase, or purchase to refinance … markets are always shifting one way or another. Mortgage loan of- ficers must adapt quickly, or their business can suffer. But with so much focus on new clients who are either buying or refinancing, previous clients are often overlooked. To get a better gauge on mining databases, MReport spoke with Louis Zitting, Founder and CEO of MonitorBase, a fintech company that monitors prescreened credit information and other real-time behavioral data to alert salespeople when someone is in the market to purchase or refinance a home. Zitting began his career developing websites for mortgage com- panies before becoming a Loan Originator and Branch Manager for a large nationwide lender. His passion is helping clients find new ways to grow their business in a data-driven world while removing complexity from the process. How can loan officers identify underserved borrowers, and what are the best ways to reach them? Zitting // There are many under- served borrowers at the moment. Much of this has to do with lend- ers struggling with capacity over the past couple of years, but that is going to change as rates increase and refi business slows down. In fact, there are still underserved borrowers for refis, as many home- owners were unable to get one due to financial issues or employment issues. So, identifying borrowers who still have a high mortgage rate and whose credit is migrating higher is key. Another underserved market that exists is those who have been renting and are in the process of improving their credit. Loan officers should be focusing on areas where average incomes are still somewhere in line with the median value of the home. Most underserved borrowers are outside the big metropolitan areas. To identify these borrowers, most loan officers will need to look at data they have not looked at before. But they also need to broaden their perception of what their client database is. It is not limited to just past transactions or your Realtor relationships … it is everyone you know! What do some loan officers get wrong when it comes to mar- keting to existing clients? Zitting // Where most loan of- ficers fall short is doing generic marketing that does not speak to individual clients. Usually, it is just automated newsletters with the interest rate updates and loan product changes, and that is it. A consumer usually sees something like this and thinks it is great for the loan officer, but they do not understand what it means for them. By blasting out generic newsletters every month, you risk wearing out the attention of your audience, and they will train themselves to ignore your updates. Deep down, consumers are not really trying to get a mortgage. They are trying to change their lifestyle. A mortgage product is part of that step, but the loan of- ficer's messaging needs to be more toward the life events of the people they are trying to reach— reaching out at a time that makes sense. So rather than a biweekly newsletter that's a product update, loan officers should provide some sort of valuable information that will be relevant to their clients at a time when they are entering the market, not just marketing to people because they are in their database. In this sense, less is more. What strategies for retaining clients for life are often over- looked? Zitting // One great way to build clients for life is to help them get their first home. For example, FHA borrowers on lower credit tiers—620 to 700—are a great place to start. There are so many first-time buyers who are having a hard time getting their offers accepted because there are so many cash offers happening. However, most still intend to buy a home and are not going to give up—it will just take them longer. The relationships you are able to develop with this group are important because when inventory starts opening up, they will be ready to go. This also gives you the opportunity to introduce first- time buyers to the agents you work with, so you are able to build your referral network as well. Uncovering Database Goldmines

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