Big Data in the Mortgage Industry | Using Big Data For Your Mortgage Business

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November 28, 2019 | By RGR Marketing Blog

5 Ways Big Data Is Making an Impact in the Mortgage Industry

By now, nobody should be surprised to learn that everything they do online, be it visit a blog, go shopping or anything else, leaves behind a data trail. This data is out there and available for businesses all over the world to use in order to sharpen their promotional targeting.

The reality is big data is still in its infancy, but already it’s changing every aspect of the relationship between consumers and businesses, and this includes those operating in the mortgage industry. From improving the accuracy of assessments to better fraud detection, big data is making an impact in the mortgage field. Here are five ways it’s doing just that, and what you as a mortgage broker needs to be aware of.

Instant First Impressions

With so many mortgage brokers utilizing digital lending platforms, it’s common for would-be borrowers to visit broker websites when shopping for lenders. However, it’s also common for these people to leave the sites relatively quickly, often without providing any contact information.

Big data makes it possible for the mortgage company to gain valuable insight into the visitor instantly, from the moment they land on the site. It does this by accessing internal analytics and third-party information. Today, thanks to big data, when a consumer visits a lender’s web-based platform, it automatically starts the sales process.

Accurate Borrower Assessments

Unlike in the past, it’s not uncommon for home shoppers to have thin credit profiles these days. This has a lot to do with millennial lifestyles, many members of which have no car loans, credit cards or salaried employment. With such a limited credit profile, it can be difficult for a broker to assess this kind of an individual.

Big data is extremely valuable in this regard. With big data, lenders can learn a lot more about borrowers. For example, although a lot of Millennials don’t utilize credit in the same way as their parents did, most do have bank accounts, pay cell phone bills and use mobile payment apps. All of this data can help lenders make more accurate assessments regarding an applicant’s credit risk when they don’t have much credit history to draw from.

Increases Speed and Efficiency

Today, lenders can integrate big data analytics when digitally processing borrower applications. This not only speeds up the underwriting process, but it also enhances data integrity and improves efficiency across the board.

Loan processors can also use machine-learning models powered by big data to avoid last-minute delays, enabling them to deliver higher-quality files more quickly to underwriters. With big data, the lending cycle timeline can be dramatically shortened.

Better Fraud Detection

There’s no doubt that going digital increases the potential for fraud to occur, and the mortgage industry is one of the most targeted sectors for it. Luckily, big data makes it easier for lenders to detect potential fraud threats. Modern technology helps lenders minimize false positives and identify questionable transactions in mere seconds.

Improves Compliance

The mortgage lending regulations and housing finance programs that the government initiated after the 2008 financial crisis have added complexities to the lending process that often leave lenders having difficulty managing compliance risks.

To ensure compliance, lenders tended to focus on one application at a time. But using big data changes this. Lenders can now integrate systems and models to speed up compliance and reporting, and upgrade reporting quality. Machine-learning models can analyze massive volumes of data in real time to test for compliance criteria and accurately predict problems before they arise.

RGR Marketing Has High-Quality Mortgage Leads Ready for Conversion

RGR Marketing is a leader in the mortgage leads industry. For over 20 years, we have been helping mortgage companies strengthen their lead conversion rates. When you purchase leads from us, your leads are exclusive to you, meaning they’re not shared with any other mortgage company or lead generation provider, and they’re leads that have shown increased interest in getting mortgages. Find out for yourself how our high-quality mortgage leads can help your mortgage business grow – contact RGR Marketing today!

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5 Ways Big Data Is Making an Impact in the Mortgage Industry

Instant First Impressions

Accurate Borrower Assessments

Increases Speed and Efficiency

Better Fraud Detection

Improves Compliance

RGR Marketing Has High-Quality Mortgage Leads Ready for Conversion

Start making more
money today!

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5 Ways Big Data Is Making an Impact in the Mortgage Industry

Instant First Impressions

Accurate Borrower Assessments

Increases Speed and Efficiency

Better Fraud Detection

Improves Compliance

RGR Marketing Has High-Quality Mortgage Leads Ready for Conversion

Start making more money today!

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