Artificial intelligence is equipping consumers with the knowledge to make better informed borrowing decisions, but traditional online marketing tools still play an important educational role, mortgage and home equity leaders said at an industry conference.
Providers of
"I think it's a little bit of what's been ingrained in a lot of people's brains for years and years, in terms of thinking about home equity as sort of this nest egg that you never touch; it's this equivalent of a 401K and you're it's just supposed to be there," said Rachel Keohan, chief marketing officer at Hometap.
"A lot of folks don't realize that our products have been re-regulated three times since the financial crisis because it needed to be, quite frankly," said Dennis Loxton, vice president of sales — reverse mortgage at New American Funding, at the
To the benefit of product providers, though, the speed at which artificial intelligence has
"[An] informed market is a better performing market," noted Hemanthkumar Jambulingam, director of product management at Tavant.
When presented with options, the range of choices can easily lead a potential borrower to stick with the familiar rather than considering what else might make more financial sense, according to Gaurav Nagla, manager, product management at Blend.
"We're telling people, 'Here's a mortgage, here's a home equity, or any of the other loans out there.' But from a customer perspective, the customer is not thinking of any other products. It's just noise in the market," he said.
AI ability to quickly pull data and present consumers with comparisons of various product types make it a valuable asset, but its tools also provide consistency in messaging to all the parties, including Realtors and lenders, that need to remain in the know.
"What we try to do is basically start the process more from a need based [perspective]," Nagla said. "If you came through that process, then at the end of the day, what you can do is suggest to the customer what is the right product."
Beyond the initial marketing, the ability of AI to deliver the consistent messaging and "relative context" provides clarity down the line throughout the origination process.
"People are taking applications, or performing financial transactions on the move. So how do you have consistent messaging across all the platforms and keep everyone informed and aware of the impact? That's where technology plays a critical role in bringing transparency into the process," Jambulingam said.
In addition to artificial intelligence, companies involved in home equity funding also see online tools, including social media, continuing to play an important role in reaching and serving borrowers effectively.
"We have FAQs pinned at the top of our Instagram page," Keohan said. On Instagram, a Hometap executive walks viewers through common questions. The company also partners with personal finance sites through affiliate programs, which reviews its products.
"We know that thousands of homeowners are reading these articles before they come to Hometap. They are at least educated and have a general sense of how our product works."
A robust online presence can also serve as an essential resource for reverse mortgage borrowers, Loxton said.
"We had to set up a marketing portal of 90 different pieces that we've aggregated over the last two years that educates both customers and external partners with everything from using it for remodeling, aging in place, using it to buy the next home, condos and the like," he said.
