Olumide Soroye, managing director of CoreLogic Information Solutions, is a man on a mission to capture data related to the mortgage business, figure out what it means and put it to work to make the entire process easier, more efficient and more profitable for all involved.
“Good data can help you make better decisions and operate more efficiently and effectively at all four steps of the lending process,” he said.
He defines those steps as:
- Finding customers
- Keeping customers
- Processing the loan application
- Underwriting and closing the loan
Soroye has a Harvard MBA and worked at QuinStreet and McKinsey & Company prior to joining CoreLogic.
“Having the right data can help you solve for efficiency, quality of experience, and risk. That is the value of intelligence,” he said.
Soroye said that mortgage volume is trending down, but that having the right information can help brokers find the people who do need mortgages.
“Refinancing is down, but people have a lot more equity in their homes than they had just a few years ago. The number of homes under water is down by 50%. One fourth of homeowners have equity of at least 25%, which leads to a situation where there is an opportunity for homeowners to take out home equity
loans,” he said.
“We have a lot of information about consumers. We do a lot of business in the rental space. We know when renters become buyers.”
Soroye said information is available that can help brokers predict when homeowners will start to think about moving to larger homes. He said he even has information that can be used to predict the mortgage needs of investors.
All this data becomes very useful when it comes to prospecting for new business. “If you call 100 people from a random list, 2 people might take a loan,” he said. If, however, you start with a list built using data that points to the likelihood of those people needing new mortgages, he said “twenty out of those hundred people will take a loan. This benefits the consumer as well as the broker, because you aren’t calling people that have no interest.”
Next week: Olumide Soroye discusses how mortgage brokers can use data to improve their relationships with existing clients and do more deals with the clients they already have.
If information is power, then having the right information at the right time, and knowing how to put it to work in your business is something approaching ultimate power.