Taking the Bait

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Th e M Rep o RT | 13 advertisement The home equity line of credit (HELOC) market continues to grow. There were more than 71,000 HELOC originations in January 2014—a 10 percent increase over January 2013. Delinquency rates also continue improving and remain very low for recent vintages. who match their risk tolerance as ideal targets for a first mortgage, home equity loan, or HELOC. The goal is to target the right candidates at the right time to increase conversion rates and profitability. Clients can identify in-market consumers by using industry- specific triggering options and credit file attributes—such as recent changes in a borrower's credit activity, changes in credit behavior over time or when a customer is more likely to open a new loan or re-enter the mortgage market. These triggers can be adapted to fit a company's demographic or market segment so it can make contact with qualified consumers before its competitors. Retaining past clients is important in any industry. If a company is not following up with its past clients about new potential deals, that company can bet that one of its competitors is already pursuing them. Using trigger points with a company's client database lets the company know the best times to re-establish contact. A company can narrow the focus of its marketing efforts even more with different types of data. For example, Equifax offers Prescreen Direct with Property, an acquisition solution for FCRA- compliant marketing campaigns that leverages both credit and property data to identify suit- able mortgage and home equity marketing leads that meet credit and loan-to-value (LTV) criteria in an efficient, timely manner. The service includes pivot tables that are specific to a mortgage, home equity loan, or HELOC—which gives a company the ability to modify criteria on the fly to man- age risk and ensure a sufficient number of leads is available for a given campaign. With Prescreen Direct, a company can evaluate and identify home equity pros- pects much faster and easier, while tailoring its marketing message for this particular segment. For more information about solutions that can help any company take advantage of the home equity market, visit HELOCs originated in 2004–2008 are hitting end-of-draw and are presenting refinance opportunities. Recent vintages of HELOCs are performing well, and rising home values are rapidly generating additional equity.

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