The quiet but real shift in mortgage marketing
Despite the media’s focus on digital advertising, the mailbox is quietly becoming a major battleground again for mortgage and home equity lenders. The environment is ripe for this: interest rates are stabilizing near 7 % (which opens up refinance & home equity demand) and consumer credit profiles remain robust yet tightening in certain segments. For lenders, precision outreach is now a key differentiator.
Why direct mail still works — and why it matters now
- According to a 2025 industry study, direct‑mail marketing continues to deliver the strongest ROI: for example, direct mail’s ROI is cited at ~$58 for every dollar spent, compared with ~$19 for PPC and ~$7 for email.
- A separate piece notes that physical mail pieces still command attention: “Consumers are more likely to trust physical mail than digital ads … response rates can range from 2% to over 5% depending on targeting and message quality.”
- But the most important reason mail is working now: data + personalization. Lenders who combine accurate consumer/credit/property insights with targeted mail campaigns are seeing a better alignment of offers and borrowers. A recent article emphasizes that “when backed by high‑quality data sources and AI‑driven triggers, mortgage direct mail can outperform digital‑only campaigns.
- For mortgage & home‑equity marketers specifically, Experian’s data shows direct mail and refined segmentation remain growth levers in a market where originations are modest but competition for good borrowers is intense.
Why this matters now, for lenders:
- With rates comparatively high, many borrowers are choosing to postpone purchases or full refinances—but still open to tapping equity. That makes mail‑based offers (especially those tailored with relevant property/equity/credit data) very timely.
- Digital advertising is crowded, algorithmic, and increasingly expensive — mail provides a differentiated channel.
- The exit or pull‑back of certain large players in home equity creates opportunity gaps.
The data speaks: from ITA to prescreen — and what’s changing
Here’s a breakdown of key shifts:
In May 2025, for mortgage and home‑equity offers:
- Mortgage ITA (Invitation to Apply) volume: ~29.2 million
- Home Equity ITA volume: ~25.8 million
- Mortgage Prescreen volume: ~15.6 million
- Home Equity Prescreen volume: ~19.0 million
Further, recent trends report that home equity direct mail offers have now surpassed first‑mortgage offers in some segments — driven by aggressive marketing and AVM‑based personalization.
The latest data from the ICE Mortgage Technology November 2025 Mortgage Monitor shows that falling mortgage rates have expanded the pool of homeowners who can reduce monthly payments via refinance or access home equity, which in turn supports more targeted direct‑mail outreach.
What this means for campaign strategy:
- Prescreen (where the lender sends offers to pre‑qualified or high‑propensity segments) is edging into prominence over broad ITA campaigns — because it enables targeted, efficient spend and stronger conversion.
- Lenders can use property and credit data (e.g., equity levels, credit score, loan‑to‑value, tenure) to craft mail offers that align with actual borrower situations (not just “Dear Homeowner”).
- The gap left by large players exiting or backing off in home equity means agile lenders can expand mail volume and capture incremental market share.
Market movers: who’s winning and why
In the direct mail & home‑equity space, several institutions and new entrants are reshaping the competitive landscape:
- NewDay USA: Leading overall mortgage mail volume, largely driven by prescreen campaigns and data‑driven segmentation.
- Pennymac: Emerging lead in ITA mail offers, overtaking legacy banks like JPMorgan Chase & Co. (Chase) and Wells Fargo & Company through agile marketing and refined offer logic.
- Truehold: Surprisingly, within the top three for mail volume in the home equity space, demonstrating demand for alternative models (e.g., sale‑leaseback, shared equity).
- Aven, Citizens Financial Group, and Point: These fintech or non‑traditional lenders are driving home‑equity prescreen campaigns; their agility and innovative products are raising consumer expectations.
- At the same time, major exits or pull‑backs create opportunities: for example, Discover Financial Services and Capital One Financial Corporation have largely exited the home‑equity market, providing a white space for others.
Lenders should study what the “winners” are doing: rapid testing, pairing direct mail with digital follow‑up, focusing on homeowner equity, data‑driven targeting, and forging products that match targeted segments (e.g., borrower with <50% LTV, good credit, within 10 years of tenure).
Prescreen vs. ITA: why targeting wins
The shift from broad ITA to prescreen‑based campaigns might seem nuanced, but its implications are strategic:
Prescreen advantages:
- Better alignment with borrower creditworthiness and property profile — because you are sending offers to those who meet risk and propensity criteria.
- Improved conversion and campaign efficiency — by reducing wasted mailings to low‑probability recipients.
- Lower marketing spend per funded loan — because you spend less to reach the right audience.
- Faster speed‑to‑market — thanks to platforms that allow weekly refreshed data and custom lists. For example, Experian’s self‑service prescreen platform offers weekly data updates and FCRA‑compliant targeting.
- Regulatory and operational clarity — prescreen infrastructure has matured, with aligned credit data, reason‑codes, and compliance built in.
ITA (Invitation to Apply) still has use cases:
- When you want to cast a wider net (e.g., first‑time homebuyers, large volume builds)
- When brand awareness is a goal rather than immediate action
- When the product is straightforward and broader, not highly segmented
But the winning strategy in 2025 and beyond is data‑driven prescreen + targeted direct mail, especially in home equity. As one blog post notes, direct mail campaigns that are personalized can deliver up to ~44% stronger conversions compared with less personalized campaigns.
Strategic opportunities for lenders and marketing teams
Based on the data and competitive shifts, here are actionable recommendations:
- Expand Home Equity Prescreen Offers: With home equity direct mail offers now pushing ahead of first‑mortgage offers in volume (and with tappable equity reaching trillions), this channel is ripe. For instance, a recent BCG report estimates ~$18.3 trillion in tappable equity in the U.S. system.
- Leverage the Player Exits: Large institutions reducing or exiting HELOC/home‑equity lines provide space for nimble lenders to increase direct‑mail volume and connect with households previously under‑targeted.
- Integrate Multi‑Channel Touchpoints: While mail is the vehicle, the journey often involves digital follow‑up, landing pages, and timely calls. Studies show layering direct mail with digital channels improves results.
- Use Data for Targeting, Not Just Volume: Utilize property, credit, income, and behavioral data (from providers like Experian) to identify segments like: homeowners with >30% equity, 5–10 years of tenure, credit score 700+, and interest in renovations or cash‑out use cases.
- Speed Matters: Campaigns should be nimble. Weekly data refreshes, agile list creation, rapid mail deployment, and timely follow‑up matter in a competitive environment.
- Measure & Optimize: Track response, conversion, ROI per piece. For example, what are funded loans per 1,000 mail pieces? Which segments convert better? Optimize creative, offer, timing.
- Stay Compliant & Transparent: Prescreen offers must follow FCRA rules; mail pieces must clearly disclose terms. Consumers and regulators are increasingly sensitive to over-targeting or over-personalization — strike a balance between personalization and respect and transparency.*
Putting it all together: rethinking your direct‑mail strategy
If your marketing playbook still treats direct mail as a “safe‑bet, high‑volume fallback”, it’s time for an upgrade. Today’s borrowers expect relevance, personalization and fast follow‑through. They are homeowners — not just buyers — and many are seeking home‑equity options rather than traditional purchase refis.
Lenders that find success in this space are likely to:
- Use data and analytics (credit + property + behavior) to identify the right audience.
- Deploy prescreen‑based campaigns rather than generic blanket offers.
- Combine direct mail + digital + phone as an orchestrated funnel.
- Monitor performance in near real‑time and iterate quickly.
- Offer products aligned with what the borrower wants (e.g., interest‑only draw period HELOCs, fixed‑conversion options, etc).
- Operate with speed, precision, and compliance.
As the market shifts, the channel is shifting too. Direct mail isn’t dead — it’s evolving, and those who invest in the right mix of data, targeting, creative and execution stand to win.
Ready to elevate your strategy?
Contact Experian’s Mortgage & Housing solutions team to explore how our platform enables:
- Weekly refreshed, bureau‑grade credit + property data
- Self‑service prescreen campaign build and list generation
- Custom segmentation using credit, equity, tenure, product propensity
- Compliance‑ready reason codes and targeting workflows*
Visit: experian.com/mortgage or speak with your Experian account executive today.
Next in the series
Blog Post 3 – “Beyond the HELOC: Why the Future of Home Equity Might Not Involve Loans at All”
*Clients are responsible for ensuring their own compliance with FCRA requirements.
