The homebuyer pool is changing (well...has changed). Learn how lenders can view opportunities to reach diverse markets and grow sales.

Transcript:

My pleasure, my pleasure. Thanks for having me.

So, first question is, why are we here today? We are here because the home buyer pool is changing. So what does that mean? People who are actually getting mortgages is changing, therefore, lenders have to change, right?

So let me share with you a couple of statistics. One is from the urban institute and then they said that all future net household growth will come from non-white households. From non-white households from 2020 to 2040.

Number two is actually from us. We are forecasting 2.4 trillion dollars, that's trillion with a T, 2.4 trillion dollars of purchase mortgage opportunity for non-white households in the next five years. And the reason that we have to do this is because what we have been doing in the industry has not been working.

Why? Because we know that home ownership rate for Whites is 74%, for Asians 60%, for Hispanics 48%, and for African Americans 44 percent%. We can do better.

And although I'm going to talk about what you see on the map here in the platform I can't cover all of the features but we're going to talk about a new way to look at your markets proactively, with diversity being central and then where lenders are driven by opportunity instead of risks.

So the idea here is that I'm showing you the Dallas market. We can do this for any market in the US but this is the Dallas market by county and for 2022 purchase originations. So red counties mean more opportunity, blue counties mean less opportunity, and again by opportunity just talking about purchase mortgage units and dollars. So if I am to click on the Dallas county, for example, we can see that it's a 20.6 billion dollar market just by itself. So as a lender, I would want to get a little bit more granular in order to identify the pockets of opportunity within the market and so what I'm doing now is showing you those pockets. So we're looking at it at the census tract level or neighborhood level.

But it's the same concept with red census tracts meaning more opportunity, blue less opportunity. So now as a lender, now that I know where the opportunity is, I want to see where my branches are relative to the opportunity. So let's see the stars. And then finally I want to see how well I've been doing, where have I been originating my loans? I can see that by the green circles that I've included.

And so that is for total purchase. So if I take off my loans and my branches for a moment, I'm going to ask my viewers to please take just a little mental snapshot of the map and remember where those red and orange census tracts are. Because if I wanted to segment this market by let's say race and ethnicity, the opportunity would be different. So first of all, here is the opportunity for African-American borrowers in Dallas. Here is the opportunity for Hispanic borrowers in Dallas. You can see how the pockets shift a little bit. And then here is the opportunity for Asian borrowers in Dallas. Again, more pockets to the Northeast.

So the whole idea is that we can segment the market by race and ethnicity. We can also segment it by borrower income. So if I wanted to identify where the LMI or CRA census tracts are, I could do so and I've done so by these purple census tracts. I can also isolate these and I'm going to take off all the other layers in the map. So all we have left are those LMI census tracks and again, if I put my branches back on and put my loans back on I can see how well I've been doing relative to LMI and CRA but not only that, not only knowing where they are, it's identifying the opportunity within them. So now I can quantify the opportunity.

And if I zoom in to this branch, for example. I would say, alright, if you know LMI lending is a top priority for me then I need to focus on, for example, this census tract with 108 loans that we're forecasting in 2022 and also these areas over here where we're saying 113 loans in this orange census tract, 157 in this one and another 116. So, because if we put our loans back on we can see that, hey, we're leaving opportunity on the table, right? We have not done a good job of lending to LMI borrowers for this specific branch. And one more, in addition to LMI or CRA census tracts, I'll zoom back out so that we can see, we can also identify majority-minority census tracts in green and again segment the market however you want to look at it.

So let me go back to my Hispanic opportunity for a moment. And again, I'm going to take off or actually I'm going to look at this branch and say, alright, well relative to our Hispanic opportunity for this branch. There's a ton of opportunity just to the North. And we can clearly see that we have not originated a single loan in this area. So what I can do is actually just focus on this area and create a submarket, what we call a Mortgage Opportunity Zone. And so here I'm just showing you that geography to the north of the branch. And the idea is if as a company we said, hey we need to improve our lending to Hispanic borrowers. How can we do that? How can we do that with this specific branch?

Well, we can do that by saying, okay, first is showing the Loan Officer or Branch Manager sitting here where the opportunity is. But then going a step further and making the data actionable. How? because we can add live MLS listings to the map. So each diamond that you see represents a live listing and I'll just pick one. So we can see this is 6439. Let me weigh. And here's the list price, but oh by the way, here's the listing agent name and contact information. I can even segment my MLS listings to say you know what? This is great, this is for all of Dallas but I want to still focus just on that area to the north of our branch.

So I can actually filter my listings to just be those ones in that submarket. And the best part is now I can go to a spreadsheet view of these listings. And what happens is that I get the entire universe of listings. So 509 active listings in just that smaller geography. So I can get really precise and I can export this to excel or I can also go to my buy agent tab which provides me two tools. As a Loan Officer, number one, is that this provides me with a top listing agent list.

So these are the top listing agents and here's their contact information. And they're the top listing agents because, for example, Ben Caballero has 536 active listings and over the past 12 months he's had over 8400 listings. He sold 2700 properties with an average close price 420 and average days on the market. That's what he's done in Dallas overall but since you noticed that I narrowed our view to just that geography to the north of the branch, I can see that Ben has 27 current listings in just that geography, in that submarket and Faraz is 28 and Michelle has 28, Patrick has 19.

So the idea is again getting very pinpoint, very precise about how to develop business relationships with the right people in the right areas of your market. So in addition to showing you who the agents are, we can also determine who the top Loan Originators are. So this is a tool that shows you, since January 1st, for residential properties Biju Paul is the number one Loan Originator and we can tell with all the companies that are listed here that Biju is a Broker.

So, he's originated 511 million dollars in the US in total and 340 million in Dallas Fort Worth specifically. So if I wanted to talk to Biju about recruiting purposes, I could click on his MLS ID and his profile comes up and I could tell right away, he's originated 910 residential loans and this is his volume. If I were to ask him how much do you produce and if he said 400 million, you might say that's a little bit off. But if you said, “Hey, I do about 320 million”. You say, “Great, that matches’, that's about right” and we could also check all of his individual transactions at the property level.

So in addition to showing you who the top Loan Originators are, we can actually pivot this information to give it to you by lender. So now, what I'm seeing is Rocket Mortgage is the number one lender in 2021 in Dallas. And so, again, I can see what Rocket has done in the US in total in these two columns. And then in Dallas specifically, here. So the idea is again if I said to you, “Well, I need a top Loan Originator but I need that top Loan Originator not in all of Dallas” because that's what it's showing. But again in that specific sub-market that I've created here and so instead of potentially Biju being the the top Loan Originator, in my specific geography, I can take a look and once this returns, I can see that actually it's Rachel Rubio who's number one, who's the best, or the most active Loan Originator here. Again, this helps you get very precise.

And the final thing is in terms of doing a search, we can do searches again for recruiting purposes, we can do specific searches by Loan Originator. So if you wanted to say, you know what, starting September 16th of this year I want to see Loan Originators who've done at least 20 loans in Dallas Fort Worth and this is my list. So again, very flexible in terms of recruiting. So the last piece is, again, I couldn't cover everything that we have but again it's being mindful of looking at your markets proactively, making sure diversity is central, and that you have that lens when you're looking at your markets and finally being driven by opportunity instead of risks.

So if you have any questions or would like to know more especially for a market you're interested in, then please go to iEmergent.com and click request a demo.

Excellent. Thank you so much, Bernard. I really appreciate that just so it's an infinite amount of data, right? And the products that you guys have developed really do allow the lender to pinpoint, just really drill down and get specific into what it is that they're looking for. Now how do they, once they start to talk with you, I think one of the things that kind of sets you guys apart as well is that you guys are consultants. I mean you don't just say, here it is, have fun with it, right?

Exactly, right. We've developed a white glove product or approach if you will where we can either teach you how to use the system so that you can do all your analyses and you're comfortable there. Or you can say hey we don't have the bandwidth or the resources but we know what information we want, you get it for us and so, I or my team at iEmergent would be able to consult just as you said in terms of, hey, how do we grow in our existing markets? How do we grow in a new market? What segments should we hit? Where is our best opportunities? And we can consult market by market on some of the best steps that we think.

True partnership there. Thank you so much. Really appreciate you guys being part of the 12 days of TMC and being part of TMC as a whole and everything that you guys bring to the table, the conversation for DMI and LMI lending and just that borrower focus is so important and will be so important for 2022 that I think that the expertise that you bring to the conversation is just priceless so we really appreciate you.