Lenders mine demographic data to expand their reach

With mortgage originations on the decline this year, lenders that want to regain lost volume or grow market share must work harder to identify and reach underserved borrower segments.

Reaching these borrowers may take more work, but it’s an essential strategy at a time when regulatory and investor requirements limit how much lenders can open up the credit box to bring in more borrowers.

Lenders need to go beyond the usual efforts and employ strategies that dig deeper. Some lenders, for example, are taking a closer look at Home Mortgage Disclosure Act data in combination with demographic information to identify and reach out to underserved ethnic groups in their geographic footprints.

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