Tag: mortgage marketing

Trigger leads have long been the preferred solution for identifying high-intent mortgage borrowers. But with the implementation of the Homebuyers Privacy Protection Act (HPPA), which introduces new limitations and consumer protections around trigger leads, that playbook will need to shift. Now, lenders are quickly facing a pivotal shift in how they discover, engage, and convert prospective borrowers into customers. The industry now stands at a crossroads. Lenders who adapt early—leaning into predictive tools, consent-based engagement, and smarter prescreening—will redefine borrower acquisition in a more privacy-centric era.  HPPA: A structural change to mortgage marketing  The HPPA amends the Fair Credit Reporting Act by significantly restricting the use of mortgage inquiries for prescreen purposes. As of March 5, 2026, credit bureaus may only provide or utilize mortgage inquiries to:  End users with explicit borrower consent  The originator of the consumer’s current mortgage  The servicer of the consumer’s current mortgage  An insured depository institution or credit union where the consumer has an existing account  While these exemptions may provide continuity for banks and credit unions, many mortgage brokers and nonbank lenders will need to overhaul their prescreen practices—or risk being cut off entirely from a previously high-performing acquisition channel.  Why this isn’t just a compliance shift—It’s a strategic recalibration  Mortgage triggers in prescreen allow lenders to react instantly to consumer intent. Lenders rely on a prompt and convincing narrative to entice applicants to switch lenders. Mortgage inquiry triggers are effective and were, therefore, a prospecting strategy for many lenders. Recent legislative changes significantly restrict the availability of these inquiry triggers, and impacted lenders are focusing on a more intentional prospecting strategy to compete.   Without these mortgage triggers in prescreen, lenders need to ask:  Who are we trying to reach?  What early signals can we act on?  How do we earn permission and attention before a mortgage inquiry ever happens?  Transforming the funnel: From reaction to anticipation  The shift in mortgage inquiry-based prescreen isn’t the end of high-intent lead targeting. It’s the beginning of a more strategic and intentional approach—one that leverages earlier indicators of mortgage readiness and focuses on building relationships, not just closing transactions.  Here’s where the momentum is evolving, creating a new and smarter funnel:  Prescreen marketing: Using credit and behavioral attributes to help identify consumers who meet specific lending criteria before they signal active intent.  Predictive modeling: Leveraging propensity scores or custom models to prioritize outreach based on conversion likelihood.  Consent-based engagement: Implementing compliant mechanisms to capture and manage borrower opt-ins at scale.  The power of predictive modeling  According to recent industry interviews, propensity modeling is emerging as one of the most effective replacements for trigger-based prescreen. These models analyze hundreds of credit attributes—such as utilization, account mix, account age, and depth—to help identify consumers statistically more likely to seek a mortgage.  For lenders just beginning to use predictive modeling, off-the-shelf models can be a quick way to identify potential borrowers. For example, when layering propensity scores on top of credit eligibility, which can improve borrower targeting, many lenders see an increase in open mortgage loan rates.  Meanwhile, custom-built models, which analyze a lender’s own campaign performance over time, offer the highest level of precise targeting. These models isolate the attributes most predictive of conversions within a specific product mix—optimizing not just volume, but fit.  Speed without traditional triggers? It’s possible  One of the biggest concerns among lenders is maintaining the speed historically enabled by trigger leads. But that concern may be overblown.  Self-service prescreen platforms now allow marketers to generate qualified lead lists in as little as 24 hours, enabling rapid response during rate drops, competitive shifts, or seasonal demand spikes.   For those new to prescreening, batch campaigns still offer value, especially with analyst support.   Don’t overlook retention  In an era of intense acquisition competition, retention becomes a key differentiator.  Lenders who monitor property status, cash flow, and consumer credit behavior can proactively identify when an existing borrower is likely to list, refinance, or exit. Armed with that intelligence, lenders can re-engage with the borrower at the right moment—sometimes before a competitor is considered or contacted.  This level of behavioral intelligence may soon separate proactive lenders from reactive ones.  Actions instead of reactions  The evolution of trigger-based prescreen doesn’t just require new tools; it demands new thinking. Lenders should begin by auditing their current pipelines and determining:  What percentage of our acquisition is dependent on triggers?  What share of our book falls under the HPPA exemptions?  How will we scale compliant opt-in collection?  Are our current prescreen or modeling capabilities future-ready?  Those who answer these questions today—and act on them—won’t just be in compliance with the new laws, they’ll lead in a transformed market. Lenders should also be asking:   Do we have the infrastructure to collect and act on borrower consent?  Are our acquisition teams equipped to run prescreen campaigns — both batch and self-service?  What predictive models are we using (or could we use) to prioritize leads?  Are we proactively monitoring our portfolio to catch retention risks early?  How are we preparing our sales teams for longer, more consultative buying journeys?  Conclusion  The HPPA signals a shift away from relying on passive, inquiry-based prescreen acquisition and the beginning of smarter, more strategic engagement with potential borrowers. Lenders who embrace this transition early will find themselves not just compliant, but competitive—with deeper borrower insights, better conversion rates, and stronger long-term customer relationships.  The market is moving. The only question is: will you lead the change or chase it?  Citation  Experian. (2025, November). Interview: How the Homebuyers Privacy Protection Act is reshaping mortgage marketing—and what lenders should do now [transcript]. Experian Mortgage Insights. Insights based on lender feedback, campaign performance data, and analysis of prescreen marketing strategies and predictive modeling outcomes were gathered from Experian client engagements and internal mortgage analytics between May and October 2025. Homebuyers Privacy Protection Act timeline and legal context referenced from legislation signed September 5, 2025, with implementation beginning March 5, 2026.   

Direct mail is reshaping mortgage and home equity lending in 2025. See why prescreen targeting, data-driven personalization, and market exits are creating new growth opportunities for lenders.

In the latest episode of “The Chrisman Commentary” podcast, Experian experts explore how lenders can navigate a tight mortgage market.

The Fed finally made their long-awaited rate cut. Hooray! The industry is saved! Brush off the dust everyone, it’s time to start originating mortgages like it’s 2006 again! Not so fast. While it's true that there are opportunities to take advantage of now that rates have declined, there remain open questions: How much further will rates decline? So far, only this single drop has been signaled. How many customers will realize benefit from a rate & term refinance offer given the rate drop(s)? What does this rate drop mean for the purchase market given that home prices remain at all-time highs? To put it simply, there are lending opportunities for home lenders (mortgage and home equity), but only for those with the ability to effectively leverage data and analytical strategies to identify and execute on the pockets of opportunity. By “pockets of opportunity,” we mean the following categories of consumers will benefit from specific mortgage or home equity offers. Rate & term refi: According to Experian research, over 83% of mortgages have an interest rate below 6.5%. This means that only the loans originated in the past couple of years (including one held by your author) will be eligible for a rate & term refi. The dollar amount on these loans will be high along with the interest rates, so even a minor savings on the interest rate will translate to potentially hundreds of thousands of dollars in lifetime interest savings for the borrowers. Being able to accurately identify which borrowers have an interest rate that is higher than the rate you can offer them is key to efficiently targeting and originating rate & term refinances. Cashout refi: Equity levels exploded over the past several years for homeowners. Home prices show no sign of slowing down and home equity continues to be a significant, and in many cases untapped, financial resource for borrowers. A cashout refi is an excellent option for those consumers with high amounts of available equity in their homes. Some borrowers may choose to originate a cashout refinance loan even if the interest rate is similar to their existing rate, such is the value of partially liquidating their equity position. Having the consumer-level data to identify what equity positions are and the current interest rate is crucial to crafting personalized, effective marketing offers. The ability to target qualified customers with a personalized offer is critical given that in August 2024, over 2.9 million cashout direct mail offers were mailed to consumers.1 Streamlined refi: The VA and FHA have streamlined refinance programs that minimize the consumer lift to refinance their loan. Additionally, there are also non-VA and FHA loans that could benefit from what is called an “Express Title,” which removes the need for a full title workup and expedites the originations process. Borrowers that meet the criteria for these streamlined refinance offers can be identified using credit data. Since these refinances are easier for consumers, they will be more likely to respond and book a refinance offer, which means more ROI for your marketing spend. Home equity lines/loans: Similar to cashout refi, home equity products are an option for consumers to access the equity they have in their price-appreciated homes. Although this is no mystery to most lenders, many lenders do not leverage adequate data or analytics to identify the needle in the haystack of customers that still remain to be targeted. Experian data shows over $25B in monthly HELOC originations as of August 2024. Understanding which consumers have a second lien position available, how much equity they have by leveraging trade-level mortgage data and Automated Valuation Model (AVM) data, and other methods can help your home equity products stand out from the sea of offers in the mail and online. At Experian, we help our clients target and originate all four categories of borrowers: rate & term refinancers, cashout refinancers, streamlined refinancers, and home equity borrowers. Crafting a marketing strategy with the accurate data to precisely identify which consumers qualify for which product is crucial to making the most of your marketing spend. Without the guidance of such data and the personalized offers they enable, your marketing message is liable to be lost among all of the other direct mail and email blasts. Market with confidence Crafting an effective holistic marketing strategy across these segments is crucial to campaign success. Consider these borrower situations and prepare to respond with confidence: Does the consumer have a high interest rate? Would the consumer benefit from a quick rate & term refi? If yes, ship the offer out. Does the consumer have a significant equity position and outstanding revolving debt balances, but not qualify for a rate & term due to a relatively low rate? If yes, ship them a cashout refi offer with language about using their equity to pay off revolving debt. Does the consumer meet the criteria for a streamlined refi, and would they benefit financially from such an offer? If yes, ship them a VA IRRRL (Interest Rate Reduction Refinance Loan), FHA streamline, or an offer to cover their refi title expenses if they qualify for an express title. Does the consumer have an open second lien on their primary residence, but not qualify for either kind of refi? If yes, ship them a home equity offer. By creating this kind of specialized marketing waterfall, lenders can ensure they have valuable offers for all borrowers, not just for a specialized market. Such strategies allow you to target your existing portfolio or a prospect population to facilitate portfolio growth and prevent portfolio attrition. Be sure to join our upcoming webinar, "Return of the Refi: Top Lending Strategies for Becoming a Refi Master." Register now and learn more about how Experian can help you win more mortgage and home equity customers in this declining rate environment. Register now Learn more 1 Mintel data

Colorado has a great deal to offer first-time homebuyers (FTHBs). While the Denver area attracts many people with its combination of outdoor recreation, culture, and economic opportunities, other parts of Colorado are worthy of attention as well. Take Colorado Springs for example – it ranks third among best places to live in the U.S. when considering lifestyle, the job market, and overall popularity.1 Overview of the Colorado FTHB market Colorado accounts for 2.15% of all U.S. first-time homebuyers, according to Experian Housing’s recent first-time homebuyer report. This figure puts Colorado in the top 20 of all states across the country. Colorado's charm holds a special appeal for younger generations. Known for its wealth of enriching experiences, Colorado naturally attracts adventure-seekers. With an array of outdoor activities like hiking and skiing, it's no wonder that Generation Y and Generation Z make up 75% of all first-time homebuyers in the state, surpassing the national average of ~70%. Affordability With three-quarters of all FTHBs in the younger market segments, affordability is a key consideration in buying a home as housing costs are a significant part of an individual or family’s overall cost of living.2 What determines affordability? Affordability can be assessed through various metrics. For the purposes of this study, Experian Housing defined affordability by calculating the rent-to-mortgage ratio (RTM). This involves comparing monthly rent payments to monthly mortgage payments. A higher rent-to-mortgage ratio suggests renters may find mortgage payments more feasible, potentially making home buying a more appealing option. Comparison of rent costs to mortgage costs What we observed: Based on the RTM ratio, home buying is most affordable in Colorado Springs, Pueblo, and Castle Rock, while renting may look more attractive in Lakewood, Fort Collins, and Arvada. Additional measures to consider: Other realities play a key role in determining what is affordable. A prospective homebuyer’s income, monthly expenses, downpayment funds available, and the cost of the rent or mortgage payment as an added expense against income, factor heavily in final decision-making. In this regard, Experian Housing examined other metrics for assessing affordability. Debt-to-income What we observed: Down payments Sample of CO data observations: (High, mid, low down payments) Sale prices and income What we observed: Experian Housing examined the median sales prices and median incomes across the U.S. This metric is useful to see how much of one’s income typically is going to housing costs in a given area, which again, impacts overall cost of living. Comparison is essential because while sales prices may be higher in a given area, correlation with income helps determine affordability. A closer look at Colorado Springs Colorado Springs ranks #1 in affordability based on Experian’s research, and its status of best affordable place to live considering overall living costs, jobs, and livability is solid.4 The younger generation is the fastest growing population in Colorado Springs. Colorado Springs is expected to be the largest city in the state by 2050 given its current rate of growth and expansion.5 In addition to its five military installations, with a huge U.S. Air Force presence, key job sectors include the larger defense industry, education, technology, and manufacturing. Affordability coupled with opportunity and lifestyle suggest Colorado Springs deserves a closer look and area mortgage lenders have a lot to tout. Experian’s data system offers unique value to lenders given the ability to take a more comprehensive look at a borrower’s financial behavior. Experian uses credit, property, rental, and other alternative data sources to capture the borrower profile. Access to such data also gives Experian a unique ability to conduct research for reports like this one, and the recent reports on Texas and Florida. For more information about the lending possibilities for first-time homebuyers, download our white paper and visit us online. Download white paper Learn more 1 US News & World Report: Best Places to Live in the US 2024-2025 https://realestate.usnews.com/places/rankings/best-places-to-live 2 https://www.experian.com/blogs/insights/top-destinations-for-first-time-homebuyers/ 3 Arvada, Lakewood and Castle Rock, part of the Denver Metro Area and what is popularly known as the Front Range Urban Corridor, also have price to income ratios of 2.8%. 4 https://www.sofi.com/best-affordable-places-to-live-in-colorado/ 5 Colorado Springs Chamber & EDC, coloradospringschamberedc

As a mortgage lender, understanding the intricacies of the New York housing market is crucial, especially when dealing with first-time homebuyers (FTHBs). While the housing market fluctuates nationwide, New York presents unique challenges and opportunities that require a nuanced approach. Distinguishing NYC from the rest of New York New York City's housing market, along with its suburbs, stands distinct from the rest of the state. With a high cost of living and unique lifestyle, NYC demands a tailored mortgage marketing strategy. This article will highlight key factors affecting affordability in New York, providing valuable insights for mortgage lenders working in this market. Overview of the New York FTHB market According to Experian Housing’s recent report on first-time homebuyers, the state of New York accounts for nearly 4.9% of all first-time homebuyers nationwide.1 More than half of first-time homebuyers are from Generation Y. When combined with Gen Z, these younger buyers make up just over 67% of the state's FTHBs, a figure slightly below the national average of 69%. Affordability metrics: The rent-to-mortgage ratio For many Americans, homeownership represents stability, security, and the future for family, community, and life. However, the decision to buy versus rent often hinges on affordability. Mortgage lenders must understand this dynamic to better assist their clients. Affordability can be defined in various ways. For the purposes of this study, Experian Housing defined affordability by comparing rental and mortgage payments, known as the rent-to-mortgage ratio (RTM ratio). A higher ratio indicates that buying a home is more economically attractive. Again, this metric does not consider incomes and debt levels, but simply housing rental prices and mortgage costs. Based solely on the RTM ratio, the transition from renting to homeownership may be more attractive in New York City, Syracuse, and Oyster Bay, while the transition may be more difficult in Cheektowaga, Amherst, and Hempstead. For mortgage lenders, understanding local markets and buyer profiles is essential. Building trust through personalized service, such as educating buyers on relevant loan programs and showcasing geographic expertise, can set you apart. With this knowledge, you can help buyers make informed decisions about affordability, whether they prefer living in the city or the suburbs. In some areas, the suburbs may offer more affordable options, while in others, the city center might be more cost-effective. Additional factors: Income, debt, and down payments Affordability extends beyond just rent and mortgage payments. Prospective homebuyers must consider their income, monthly expenses, and access to funds for a down payment. Mortgage lenders need to account for these factors when advising first-time homebuyers. Debt-to-income Average DTI across the 14 cities observed was 25.6%. The chart below highlights those at the higher and lower end of the spectrum. Down payments Down payments varied greatly, but the median across the cities observed was 16.5%. The chart below highlights an example at the high, mid, and low point. Sale prices and income Experian Housing analyzed median sales prices and incomes across the U.S., with New York serving as a prime example of the importance of this comparison in assessing affordability. This correlation is crucial; while sales prices may be high, understanding how they align with local incomes helps lenders accurately gauge market dynamics and guide buyers more effectively. In conclusion, having a deep understanding of the New York housing market is invaluable for mortgage lenders aiming to support first-time homebuyers. By leveraging insights into market dynamics, affordability metrics, and borrower profiles, lenders can offer tailored advice that meets the specific needs of their clients. This not only helps buyers navigate the complexities of homeownership but also builds lasting trust and loyalty. Equipped with these insights, you, as a lender, can play a pivotal role in making the dream of homeownership a reality for first-time buyers in New York. Let's continue to empower our clients with the knowledge and guidance they need to make informed and confident decisions in their homebuying journey. For more insights, check out our recent studies on the Florida and Texas markets and download our first-time homebuyer whitepaper. Download white paper Learn more

Learn about the state of housing affordability in Florida and how you can attract first-time homebuyers here.

Learn about why businesses and consumers are moving to Texas, the state's affordability, and how you can attract first-time homebuyers here.

Experian's Residential Property Attributes helps mortgage lenders enhance their marketing and lead generation strategies.