We've partnered with Sales Boomerang to provide them with the powerful real-time market data from our tool, nSight for Mortgage, so that they can arm their loan officers with all the information they need to close the right deal at the right time with the right customer. I sat down with Sales Boomerang's Co-Founder and CEO, Alex Kutsishin, to hear what they're all about and how this partnership will work
What is Sales Boomerang’s origin story? Tell us about how you are bringing customer intelligence models from the likes of Amazon, Nest, and Google to the lending industry.
The origin story is interesting. I’m not from the mortgage industry. I was actually consulting for a business intelligence company and got a call from a buddy of mine that runs a mortgage marketing company. I go over and I see that they used 212,000 unique phone calls for their mortgage lending consumers and out of those calls they only generated 19,000 mortgages. So I asked what were they planning to do with the other 193,000 calls that didn’t move forward?
They said nothing.
The customer would just buy the lead again. That made no sense to me. The customers bought this lead/call, the person didn’t move forward but to have another chance with this call the customer has to buy the lead again? And after I kept hearing this is just how it is, that’s when I realized there is an opportunity here that has not been looked at for a very, VERY, long time.
I started talking to mortgage lenders and gathering data and realized that some lenders had missed out on $30 million worth of loans from just one database of 1,500 records. After doing more research, I realized that all of these borrowers that didn’t move forward just went with another lender within a 12-month period and here these lenders are thinking these leads are dead. So, there’s an opportunity here. An opportunity to bridge the gap between borrower and lender and we can do it in such a way where loan officers don’t have to learn new technology and that’s where Sales Boomerang comes in.
In the current environment and in the past six months, how much have you seen your customer base change in the form of how they interact with the data you provide? Are they changing? What are they doing differently?
In this current environment we’re in, loan volume? Not an issue. But in a time where there is literally more food on the plate than you can eat, putting more food on that plate is not helpful. The way we've seen our clients change how they use the system is twofold. Number one is EPO prevention. This year has seen more early payoffs than any year previous because of seven rate drops. So, don't worry about the loan volume but prevent your customers from leaving too early. Number two is prioritization. When you have so much food on the plate, how do you know which bite is the tastiest? So, you try to eat it all and throw out the ones that aren’t good one by one. You're still going to be converting at that 10-15-20% ratio. If you have prioritization, then you have efficiencies. You're not focused on everyone. You're focused on the ones you can help right now. So, those are the biggest changes we've seen from our clients using our system in an environment like this.
Do you have any real-life examples of LOs leveraging data to increase their lead to app conversions or more importantly provide unforgettable, customized experiences to customers based on customer intelligence?
I could give you a laundry list of examples. Just the other day I heard from an LO and she told me that the tool has helped her get clients back that may have otherwise gone somewhere else. Another great example. We had a client get a listing alert. He picks up the phone and calls. It was this woman he had already done a loan for. She was so excited to hear from him and even referred him to her brother in law who was also in the market for a loan. Had another client who told us she always ignored our notifications. Didn’t see the value in them. But after going through them, she got three applications from the alerts the came in from just the past two weeks.
Sales Boomerang will now be using data from nSight for Mortgage to enhance Sales Boomerang Rate Watch+, can you talk a bit about how that will work? What is the value of this new integration to mortgage lenders?
Right now, our rate watch program is a free service where lenders tell us what their current rates are, and our system discovers opportunities in their data meaning as a loan officer, I don't have to go and scroll through my database to find opportunities. Our system will just bring them to the surface. However, it’s still a manual process for the loan officer once they get the data to see if they can in fact help that borrow. So, what our partnership with Nomis Solutions allows us to do is completely automate the process. It takes all the guesswork out of it. Before, we weren’t using metrics. We weren’t using equity or credit. We were just saying this rate is higher than your rate. Maybe you should call them, but we don’t know if they are qualified.
Now, with Nomis Solutions’ data, we make it ultra-relevant. We’re using a lot more data points to be able to say not only can this person benefit from this low rate, but they're also qualified. Now as a loan officer you don’t have to guess or fish for anything. You can already start thinking of a loan offer as you’re calling them. That’s the beauty of this partnership and why we’re all so excited about it. We’re able to automate the process and make it much more valuable and we made it fit into what the existing process already is.
Do you have any predictions for what you think the future of the lending environment looks like based on the forced evolution the past six months? Why should lenders be excited?
I think the future of the lending industry in itself is all about preparing borrowers for future loans and event-based scheduling those loans in advance. Imagine you have Mr. and Mrs. Borrower. Their next best loan will happen when either rates drop to this certain level or their credit goes to this level or their equities are at this level and so on. Until any of these happen, they can just live their life knowing they are in the best loan possible.
Why is this so important? Retention rates in the mortgage industry are less than around 15%. That means 85% of people have to start shopping around rather than just calling a friend/lender. This industry is one of the least trusted industries, so we believe the future is about scheduling and preparing the borrower for the next best loan for them so they can have peace of mind in knowing that they are with a lender that understands their needs and isn’t just trying to sell them something.
I think lenders should be excited because right now is the perfect time to make yourself memorable in your transactions. Don’t let people forget you so that when they are ready for their next transaction, you can remind them that you were the one who helped them during COVID-19. It’s a huge change to be top of mind when the borrower is ready. Also, we’ve seen and proven that doing this all digitally works. Not having to see people face to face works. The concept of an e-mortgage works. And that’s a hugely exciting thing to come from this.
Want to hear more from Alex? Check out our webinar with MBA, "Lending 2021: Will You Change the Way You Work to Compete?", where Alex and experts from Nomis Solutions discuss the state of the mortgage industry and how best to deal with all the tremendous changes 2020 has handed us.