In the second quarter of 2022, tappable home equity increased from the first quarter while home listings expanded, and credit scores also rose. According to Sales Boomerang’s research on mortgage chances for the second quarter, those three areas give a chance for lenders to cope with an extremely difficult mortgage market.

According to Mike Spotten, executive vice president of product at Sales Boomerang, new property listings, and cash-out alerts trended higher in the second quarter, making buy and home equity products logical investment areas for lenders as they prioritize allocating scarce resources.

The considerable quarter-over-quarter growth shows how pandemic-related fiscal measures, such as government stimulus payments, tax credits, and student debt moratoria have improved Americans’ overall financial situation, the research said. In addition, as interest rates rise and discourage rate shopping and refinances, the second quarter showed a reduction in mortgage inquiry notifications, rate alerts, and rate-and-term alerts.

Sales Boomerang looked at information from more than 170 residential mortgage lenders who use its platform to track millions of client and prospect records. The mortgage technology company then determined and contrasted the total frequency with those contact records, resulting in loan opportunity, prescriptive scenario, and risk and retention alerts between the first and second quarters of 2022.

About 1.44% of the monitored interactions were new listing notifications, an increase of 69% over the first quarter. Credit improvement alerts made up more than 4% of monitored interactions, an increase of more than 130% from the previous quarter.

Rising interest rates have led to an increase in the value of mortgage servicing rights. According to the research, lenders must carefully consider the advantages and disadvantages as well as potential balance sheet effects of holding onto versus selling mortgage servicing rights. To read more, click here.

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