This past weekend at AIME Fuse Phil Shoemaker, Chief Business Officer of Home Point Financial, shared his vision on helping Mortgage Brokers get to 50% market share with their Customer For Life focus.
Phil started his talk with the current state of the industry when it comes to loan retention with these quick hits:
- Due to the inherent complexity of mortgage, our business (and most brokers) are very transactional
- Many originators work so hard at ensuring a successful mortgage transaction that can't invest the time and money in nurturing ongoing customer relationships
- This is supported by our research showing brokers recapture only 14% of their business!
- Best industry recapture rate? 70%. And it isn't brokers.
Guess who is at 70%? It starts with Q and ends with Icky.
Phil continued on that at Home Point; they strategized on what they can do to close the gap from 14% to 70% in favor of their mortgage broker partners. Enter Home Point's Customer For Life vision for brokers.
Home Point is the only wholesale lender that retains over 95% of their servicing, which they saw as a golden opportunity to help brokers recapture business and retain their clients for the long term.
So what does that look like for the mortgage broker? Phil gave the Fuse audience a few details on what their Customer For Life solution would entail.
First is delivering a scorecard for brokers to help them understand their historical customer retention performance at the loan level and see the dollar value of missed opportunities. You can't improve upon what you don't track and what you don't know, so this scorecard will help give brokers a visual into that data.
Second is helping brokers leverage their servicing connectivity.
On 10/1 they launched a new customer portal. The first feature they are adding to the portal is the broker's contact info and making sure that in every interaction they have with the borrower, the broker is being reinforced as the borrower's trusted advisor.
Home Point has roughly 50 yearly touchpoints with their portfolio (Monthly MTG statements, annual escrow statements, website visits, etc..) But the most staggering of this is the 200k+ phone calls to servicing where ⅔ of recapture transactions initiate!
Phil gave a couple servicing call examples, where Home Point can help streamline the refinance experience for the customer and the broker — creating a customer experience where they remain in the partnership ecosystem without the client hanging up and going to google where ultimately the big box lender ads will be front and center.
Phil emphasized that Home Point's advantage here is that they are servicing the customer for the life of the loan…not for 1 month, 3 months, 12 months, …for as long as that loan exists. Looking back at the touchpoint graphic above, that is a lot of monthly/yearly touchpoints where Home Point is putting the broker front and center.
Phil talked about how Home Point has multiple opportunities per year to have meaningful interaction with their customers. Still, ultimately, they are not in the best position to fully maximize those interactions. But the broker is!
For Home Point, Customer For Life is about coming together with the broker to change the way they think about customers. Collectively they are both Home Point and the broker's customers, and Phil believes that together they can leverage each other's strengths to massively increase broker market share.
Phil concluded that Customer For Life is the bet that Home Point is making! They have invested a half a billion dollars towards this vision, and have 1400 people working towards this goal every day. Home Point is going all in on this focus with helping their broker partners create Customers For Life!