“Why Maintaining a Mortgage Customer Database is Essential for the Longevity of Your Mortgage Business”


The battle for having one’s share of the market is not new in the mortgage lending industry. Smart mortgage lenders are now making use of their customer database to stay ahead of the competition as the lending regulations become more stringent and the volumes of home loans reduce. A customer database is helping mortgage lenders remain in business through a number of ways such as:

·        Enhancing loan originations

·        Improving customer engagement

·        Having insight into the customer and market intelligence

·        Providing high quality loans

·        Access to recorded documents

Competitive mortgage lenders are making use of the insights obtained from customer database to skyrocket their market share of new home loans and also improve mortgage quality. The benefits highlighted above shall be discussed in this article.

Enhancing Loan Originations

The use of a customer database can help mortgage lenders aid their loan origination process, both for current customers and non-customer prospects. Loan officers in most organizations are able to pull up customer information electronically before approaching a customer. This enables them to have more understanding about the customer’s situation. By having access to the name and address of a customer, a loan officer can view the last reported value of the subject property as well as the recent sales in the area. With this information, the loan officer will be more prepared to have an effective conversation with the customer, which increases the chances of closing the loan.

Improving Customer Engagement

If you are interested in increasing the long-term value of your customer, you need to understand and increase your customer’s connection to the lending institution. This can be achieved through a well-maintained customer database. A well-maintained database will help you provide answers to questions like:

  • ·       Home Loan
  •  Does the customer have a credit card?
  • ·        Checking account?
  • ·        Savings account?
  • ·        Certificate of deposit?
  • ·        Personal loan?
  • ·        Auto loan?

The more the points of connection between the customer and the lending institution, the stronger the relationship and this will increase the likelihood of the customer to remain a customer. Smart mortgage lenders are making use of this analysis to increase the relationship of their customers with them. Customers having too few points are often flagged to receive marketing messages that will boost their relationships. These types of customers are also identified for future outreach.

Insight into the Customer and Market Intelligence

When a credit union finds out that a particular customer does not have a home loan with the lender, it is essential for the credit union or bank to find out the lender that currently has their mortgage. This information will go a long way in understanding the customer’s needs and situation. Lenders can have access to this information via a customer database. The customer database will enable the lender to determine the customers that can be candidates for a home equity loan or line of credit. It can also enable them to know if the customer is ready is to move to another property qualify for a future purchase loan. Smart lenders use this method to market to non-customers in areas that they want to reach.

Providing High Quality Loans

The provision of high quality home loans begins with data. The verification of property, ownership and lien information at the earliest stage of the loan process enables lenders to increase the quality of loan while reducing wasted time and increasing the time to close. Maintaining a mortgage customer database will give lenders a means of quickly verifying property ownership, property characteristics as well as current liens. It also enables loan officers to quickly estimate the values of properties in a particular area.

Lenders with a customer database can originate high quality loans and also obtain the documents that they need to complete the loan process efficiently while reducing lending risks in the process. Customer database enhances quicker verification of property ownership, legal description as well as liens needed by lenders to qualify both the borrower and the property.

Access to Recorded Documents

For you to remain in compliance with regulations, you need to obtain all the required documents on time to fulfill a loan. This can be challenging. You can, however, streamline this process if you maintain a customer database. With a well-maintained customer database, you can search through lots of recorded documents and find the documents that you need to complete the loan process.


Having a mortgage customer database is essential to be a lender for LIFE! Lack of such database complicates your business and affects its growth. As shown in this article, a customer’s’ database that contains the customer profile will make it easy for you to engage with your customers.

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1 thought on ““Why Maintaining a Mortgage Customer Database is Essential for the Longevity of Your Mortgage Business”


    (03/14/2018 - 6:56 am)

    I started as a MLO nine years ago, I just started maintaining my customer database three years ago. Only if I started when I first began❗️ Karen M. ” “California Mortgage Queen”

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