Prescreened Credit Data

 Finding qualified and motivated customers for your mortgage products can be analogous to piecing together a document that has just went through the shredder. Commonly, we see a mortgage marketers that pay a lot of money to get in front of an interested prospect that can’t survive the underwriting process because they lack the qualifications. On the flip side, other prospects may be qualified, but not in the market for a mortgage product or service. How do financial marketers piece together a list of potential leads that will generate the results they want, without making them sift through piles of dead ends?

The answer is prescreened credit data, which allows lenders and mortgage brokers to build a precise database of consumers that match exact requirements. Prescreened data has been the best performing set of data for marketers that can extend a “firm offer of credit” and is able to satisfy other FCRA requirements. When searching for the most eligible candidates for mortgage products, we will perform a “soft” credit inquiry through our tri-bureau platform which is dialed into all three leading credit bureaus. Unlike a hard hit where a consumer directly applies for credit, a soft credit inquiry has no adverse impact on credit.

Soft inquiry
A soft inquiry or soft pull is a term used to refer to an inquiry into a consumer’s credit history that does not tarnish their credit score.  Oftentimes, consumers are unaware of this type of inquiry, as when a credit card company uses a soft pull to identify qualified borrowers and send a mail piece informing them that they are “pre-approved” for a credit card. Many potential employers also use this type of pull in background checks and banks use a soft inquiry to verify that you are who say you are when opening an account. When a consumer checks their own credit report, this is done with a soft pull, as well.

Hard pull

In contrast to a soft inquiry, a hard pull does affect credit score. Whenever a consumer directly applies for a loan or new credit card, the lender conducts a hard pull on their credit report. This stays on record and lowers the applicant’s credit score by about five points for six months.

Benefits
Prescreened data offers notable advantages for consumers and financial marketers alike. This type of data marries potential customers who are most likely and able to buy financial products with the companies offering those products.

Consumers receiving prescreened offers are also more likely to realize lower rates and payments than they would otherwise be able to obtain and empowers lenders to tailor their offerings to consumers who are able to qualify. This results in lower acquisition costs, brisker response rates, and a higher return on investment.

It’s a little like speed dating or browsing profiles on dating sites. You weed out the married folks, those too young or too old, and those without jobs. In the same way, prescreened data serves as a “matchmaker”, allowing lenders to find the best fit using myriad attributes available through consumer credit reports to weed out prospects that are least likely to respond to an offer and qualify, and hone in on the best fit for their products. Here’s some common filters to connect the right products to the right consumers at the right time:

• Exact credit score (FICO/Beacon)
• Aggregate revolving account balances
• Percentage of equity (LTV)
• Payment history
• Estimated home values
• Mortgage balance range
• Monthly payment amounts
• Loan type (FHA, VA, Fannie/Freddie owned, etc)
• Utilization of credit
• Origination dates (seasoning)
• Number of trade lines

As an illustration, marketers seeking Reverse Mortgage Leads would want to target seniors that have a history of delinquent mortgage payments to predict a financial hardship. However, mortgage brokers that are seeking FHA Streamline Refinance Leads would  want to target homeowners in FHA loans that have no mortgage delinquencies within the past 12 months.

The above filters are not exhaustive, and the capabilities to build your perfect list is left only to your imagination. What’s your niche market? Using the most deeply populous database available, we can go to the drawing board and tell you how many prospects are motivated and qualified for your offer. For fast counts and experience-driven advice, call a prescreened data expert at 866-490-3459 or get a free count online by entering your criteria.

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