By: Jeroen Rozenberg
National credit agencies are getting ready to turn over a new leaf on the credit scores of many consumers who have been subject to tax liens or civil judgments in the past. This is good news for around 12 million Americans, roughly 7% of the 220 million who have a credit report, and it’s also an exciting opportunity for marketers working in the mortgage industry. As with any change, it raises many key questions: What do lenders need to know about the new rules and how can they make sure they are targeting and converting excellent leads? How can marketers quickly update their campaigns to effectively reach out to these millions of potential new clients going forward?
The Tipping Point
Under the new credit-agency rules, consumers who had previously suffered from lower credit on account of past tax liens or civil judgments will now be relieved of those credit-score black marks. As a result, many of these consumers will experience a boost of up to 20 points in their credit scores. Increases like that could be enough to tip the scale for many of these consumers, shifting them from a lower credit rating to a higher one (e.g., from “poor” to “fair,” or from “good” to “excellent”). In other words, the market could potentially be welcoming millions of creditworthy consumers, suddenly eligible for home equity products and lending rates that were wrongfully denied them in the past.
Credit scores are widely used in the financial industry to indicate a consumer’s trustworthiness and ability to repay loans. They are based on many factors primarily related to past lending and financial behavior. Mortgage lenders set strict eligibility limits on minimum credit scores to make sure they are only lending to borrowers who will realistically be able to keep up with repayment. Since tax liens and unfavorable civil judgments have been found to be poor indicators of actual creditworthiness, these will no longer be taken into consideration when calculating credit scores.
Seize the Moment
Mortgage-industry marketers need to act fast to welcome potentially excellent new customers into the market. This is a perfect moment to double down on efforts to convert leads who are now new to the market and ready to take full advantage of their new creditworthy status. Many marketing teams are turning to lead generation solutions from ReviMedia to streamline lead generation activities using cutting-edge, data-driven methods.
In addition to offering optimal transparency and analytics, ReviMedia, powered by its built inhouse SaaS platform, PX, easily enables marketers to finely tune their targeting criteria, giving them access to leads who optimally match their offering. One of the major advantages of ReviMedia’s software at times like these is the ability to make seamless adjustments, such as updating filters, at any time. Considering the tsunami wave of newly creditworthy consumers that could be hitting the home-lending market very soon, nationwide lenders need a smart, flexible partner like ReviMedia to help them rapidly adjust to fast-pace market changes.
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