Lending

Purchase Market: Are You Getting Your Share?

5 mins read
August 14, 2017
By
Total Expert

Refinances are firmly in the background for the second consecutive month as purchase loans made up 68% of all originations, according to Ellie Mae’s June Origination Insight Report. To grow – or even compete – mortgage companies and producers must constantly increase their share of the purchase sector.

New data released by industry data and analytics provider Black Knight Financial Services shows that 1.5 million borrowers have purchased homes with less than 10% down in the last 12 months, accounting for nearly 40% of all purchase loans in that same timeframe. While high LTV mortgages are coming close to accounting for nearly half of all purchase originations, there’s a wide knowledge gap about their existence, availability and how they work among the general public.

Consider the following responses from industry professionals to a survey by Genworth Mortgage Insurance at the Mortgage Bankers Association Secondary Conference this past May:  

  • 28% said borrowers believe a down payment of 20% is required
  • 41% said borrowers who know it’s possible to buy a home with less than 20% down believe it’s very difficult to do so
  • 39% said a lack of general knowledge of the home buying process is responsible for first-time home buyer hesitation

We can’t estimate how many more renters would come forward to buy homes if they understood the many low down payment options available and the overall process better. But companies and MLOs can craft messages and communicate this important information not only to increase production, but to educate consumers and help them avoid missing out on this still-favorable interest rate climate.

Systemized, consistent outreach to leads, post close database and sphere of influence has become a minimum standard and of course it’s important to cover the basics and address the common pain points. But companies and MLOs seeking to make it to the next level need to take steps to move their markets rather than just reacting to them. For example, the Genworth survey numbers reveal that industry pros are encountering misconceptions and even fear among consumers, and the specter of the mortgage meltdown has consumers on edge about things like high LTV loans that sound almost too good to be true. It’s time to speak boldly to those concerns in addition to the traditional approach in email, print and conversations with consumers.

  • Sample Subject Line/Talking Point: It doesn’t take 20!

Spread the word that it doesn’t take a 20% down payment to purchase a home. Use down and monthly payment scenarios on your partners’ listings to illustrate possibilities with today’s programs and integrate them into your emails, open house financing information and conversations. Make it known that less than 60% of purchase loans backed by government sponsored enterprises involve borrowers putting down 20% or more. Use this fact as an opportunity to discuss people’s plans in the next few years that may involve moving up, second or vacation homes.

  • Sample Subject Line/Talking Point: We’re not bubbling over.

The public is inundated with mixed messages about the housing market, so be sure to address the many headlines about rising prices that have been swirling about all year. Today’s market is different from the conditions that led to unsustainable appreciation and crises of the past. Solid analysis from experts like S&P Dow Jones Indices managing director and chairman David Blitzer can help: “Housing is not repeating the bubble period of 2000-2006: price increases vary across the country unlike the earlier period when rising prices were almost universal; the number of homes sold annually is 20 percent less today than in the earlier period and the months’ supply is declining, not surging.”

  • Sample Subject Line/Talking Point: Upgraded versions….

Loans and borrowers are higher quality today.  People need to understand that the days of fogging a mirror and getting a mortgage are long gone and the professionals in the industry today care about their clients and their ability to afford a home – not just qualify for one.  The average high LTV borrower of today has a credit score that’s 50 points higher than those approved for the same types of loans 2004-2007.  Even though adjustable rate mortgages are available, they’re not used nearly as often as they used to be:  Fewer than 1% of high LTV purchase loans are ARMs.   Talk about today’s opportunities and future benefits homeownership can provide.

Determining and addressing objections that keep consumers on the home buying sidelines will help craft the messages that mobilize more people into the lead category where you can create engagement with edgy, education-based marketing. A renter can’t get excited about having their monthly housing dollars build equity if they mistakenly believe they’ll never be able to accumulate a sufficient down payment or that home prices are skyrocketing to the point they’ll never be able to afford to buy.

Help consumers past the roadblocks of misconceptions and fear so they can make informed decisions. The best way to increase your share of purchase business is to be involved in creating it.  

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Most lenders approach AI the way they've approached every technology upgrade for the last two decades: find the part of the process that's slow and make it faster. Total Expert Founder and CEO Joe Welu says that mindset, while understandable, is holding the industry back from the outcomes AI actually makes possible.

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The problem with doing the same thing “faster"

For years, lending organizations have measured technology's value by a simple test: did it get people to log in and complete a task? New dashboards, new buttons, and new workflows all designed to change human behavior just enough to extract a little more efficiency from the same process.

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What breaks when the old ceiling stays in place

Joe used an analogy at the 2026 HousingWire AI Summit to capture the stakes: a farmer who just got a bigger, faster horse looks to the neighbor’s field and watches them ride by on a tractor. Incremental improvements, like faster horses, were the best option for decades. That's not the case anymore.

The risk isn't hypothetical. We still see lenders asking AI to slightly improve an existing workflow, rather than asking what their workflow should look like with AI built in from the start. And the lenders who are still chasing incremental improvements will find themselves outpaced by competitors who were willing to embrace a new mindset, a new strategy, and new era.  

Joe also highlighted that speed and speed alone will not set you apart. Context will be the critical differentiator in an AI-enabled world. Being the first one to engage a borrower is great, but only if you actually have something to talk about. Historically, a legacy database only knew what a person remembered to type into it. If that information wasn't captured, the system, and the loan officer, wouldn't be able to use it for the next conversation.

Context is king, and the mindset shift that gets you there

This is where Joe took the conversation from diagnosis to direction. Total Expert's Customer IQ continuously aggregates zero-, first-, and third-party data to create a complete financial profile and interaction history for every customer. This provides lending teams with the context they need at the exact moment it matters, whether that's to a loan officer having a conversation or an AI agent handling a task automatically.  

To put things in a perspective that everyone can understand, Joe drew a comparison to how streaming platforms already personalize recommendations based on what the user has watched or listened to previously—i.e., context. When that context is missing, it's obvious and often frustrating. He argues borrowers feel that same disconnect when their lender's outreach doesn't reflect where they actually are in their financial journey.

This level of change doesn't happen without friction. There will be individuals, teams, and even entire organizations that resist this shift. But leaders have to be clear-eyed about the realities of how our industry is evolving and, more importantly, how consumer expectations are driving that evolution.  

The reframe Joe’s pushing lenders toward is to stop measuring success by tasks completed, and start measuring it by the lifetime value of the customer relationship. He calls this “turning relationships into appreciating assets," where organizations never lose a customer and continually find new ways to add value to that relationship over time, rather than treating every interaction as a standalone transaction.

The takeaway

AI doesn't create value on its own. It creates value when it's grounded in real customer context, embedded in the actual workflow, and pointed at a bigger goal than getting a task done faster. For lenders willing to rethink the engine itself, Welu says the payoff isn't incremental. It's the same seismic shift that farmers experienced when they realized that even the slowest tractor was more efficient than the fastest horse.

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The problem: leads disappearing in the middle

Walk into any mortgage lender, and you'll find the same story. Loan officers are smart, they work hard, and they have plenty of leads coming in from multiple sources: referral partners, purchased leads from Zillow and LendingTree, and their own past customers.

But somewhere between the lead arrival and the follow-up, opportunities vanish.

USA Mortgage's VP of Sales and Customer Experience, Alec Picinich, described the friction this way:

"We had strong loan officers and plenty of lead activity, but the handoff was the issue. There was no uniform system in place. Most producers had their own system—reminder-based inbox notifications, spreadsheets, personal call lists. The lack of centralization was the biggest issue. The gap was in the middle, where the opportunities kind of just disappeared."

All those disconnected systems led to inconsistent follow-up and limited visibility into what was working and what wasn't. And with no way to nurture borrowers who weren't quite ready today but might be ready next month, those opportunities got buried deeper and deeper under waves of new leads.

The result was predictable: lost deals, confused teams, and a corporate support function with limited ways to help scale best practices across the organization.

The Solution: one source of truth

Rather than layering on more tools, USA Mortgage decided to consolidate. They brought all their leads from referral partners, purchased sources, and past customers into a single unified platform: Total Expert's Lead Management.

But consolidation was just the first step toward preventing leads from slipping through the cracks. The real shift came when they connected three capabilities:

1. Customer IQ: identifying opportunities in your existing database

Most loan officers don't excel at proactively reaching out to past customers. They're focused on today's purchase business, and without a system to surface opportunities, past borrowers fade into the background.

Customer IQ changes that. It's a contextual data system that continuously monitors and enriches every contact record in your database. When a borrower experiences a life or market event that creates an opportunity such as a rate drop (refinance window), a credit inquiry from another lender, a debt threshold crossed, a marriage or divorce, Customer IQ spots it and brings it to your team’s attention.

At USA Mortgage, this meant monitoring 190,000 customers and turning insights into action. In just six months (January–June 2024), those customers generated:

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That's an opportunity that was already sitting there; it just needed to be seen.

2. Lead Management: centralized workflow and accountability

With Customer IQ surfacing opportunities, USA Mortgage needed a system where loan officers could manage those leads the same way they manage purchased or referral partner leads.

Lead Management provided:

  • A single source of truth for all leads (past customers, referral partners, purchased leads)
  • Clear visibility into lead stage and action items
  • Consistent routing based on originator or branch
  • Automated nurture campaigns for borrowers who weren't ready yet
  • Compliance controls to ensure messaging is consistent and compliant

Suddenly, loan officers could answer three simple questions about every opportunity: Who is the lead? What do they need? Why is the opportunity present right now?

That context—that "why"—changes everything. It's the difference between a cold check-in call and a conversation-ready outreach.

3. AI Sales Assistant: outreach on demand & at scale

Even with a unified system and better intelligence, loan officers still can't personally call every past customer when the market shifts. If rates drop and 1,000 borrowers become in-the-money for a refi, even the most efficient lending teams can't operationalize that in the two or three weeks when the market window is open.

Enter AI Sales Assistant, a human-like voice AI that’s powered by Customer IQ’s contextual data and trained on real-world mortgage conversations so it can answer questions, navigate borrower objections, and qualify opportunities.

AI Sales Assistant acts as an extension of lending teams by:

  • Initiating outreach to all qualified past customers (potentially in a single day)
  • Personalizing the conversation based on the borrower's situation, previous transaction, and estimated savings
  • Handling objections gracefully (Alec shared the story of a borrower who said "I'm feeling sick, not a good time.” AI Sales Assistant responded with empathy and offered to schedule with the loan officer later, which the borrower accepted)
  • Offering warm transfers to the loan officer for borrowers ready to talk
  • Scheduling meetings on the originator's calendar for qualified leads

This allows loan officers to focus their time on high-quality conversations with informed borrowers, not figuring out who to call or manually working through a database.

Real-world execution

One of USA Mortgage's senior regional VPs shared a success story that perfectly captures the shift:

An experienced loan officer received a credit inquiry alert for a past customer; someone she hadn't worked with in years. The borrower had lost the loan officer’s contact information. But thanks to the alert surfaced by Customer IQ, the loan officer reached out with context and relevance.

The result? A $400K pipeline boost with minimal effort from the loan officer.

This doesn't happen with a generic check-in call. It happens when the loan officer knows why they're calling and has the data to back it up so the outreach feels timely instead of transactional.

The bigger picture: human + AI operating model

What USA Mortgage discovered is that the future isn't human or AI. It's human + AI.

The loan officer remains the relationship owner and builder, the decision-maker, the one who earns trust. But now, they're equipped with:

  • Intelligence about who to engage and why
  • Automation handling the high-volume, time-sensitive outreach
  • Consistency across the entire organization
  • Tools that make their job easier, not harder

Three takeaways

If you're struggling with lead follow-up, originators working in silos, or deals slipping out the back door, here's what to focus on:

1. Strong lead management isn't just about speed—it's about long-term nurturing
Speed matters for converting hot leads, but most conversions happen in the follow-up. Build a nurturing strategy that keeps borrowers engaged from first touch through the next opportunity to serve.

2. Your database is your biggest opportunity; operationalize it like a referral partner lead

‍If you're not connecting data intelligence with lead management, you're leaving deals on the table. Treat past-customer insights with the same urgency and structure as a purchased lead or referral partner referral.

3. Build an enterprise strategy with human + AI models

‍Replace ad-hoc originator habits (spreadsheets, personal reminders, disconnected systems) with a unified, AI-assisted operating model. Consistency across your sales force is what unlocks scale.

Watch the full conversation

Hear how USA Mortgage is using Total Expert to solve their lead management challenges, develop a better understanding of their customers, and engage opportunities at scale.

Ready to explore how a human + AI operating model could transform your originator productivity and customer conversions?

Reach out to your Total Expert Customer Success Manager or book a demo with our team below!

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