Mike Eshelman, Head of Consumer Finance at Jornaya, writes about behavioral data in the National Mortgage Professional Magazine. Below is an excerpt where Eshelman outlines:
- Nimble and innovative non-bank lenders primarily focused on new customer acquisition have been successfully experimenting with behavioral data sets, and the impact has been noticeable for servicers in the form of declining retention rates.
- The models lenders relied on for years to power their efforts of identifying customers who are in-market, or will likely be in-market soon, have become less and less effective because many use the same data that most lenders use.
- Although credit triggers are important and a strong indication that a customer is at-risk, this is also informing the lender, and dozens of other lenders buying the same credit triggers, that they are already behind and needing to play catch up to win the business.