00:00Well, we are live from Las Vegas.
00:08I'm Diego Sanchez, president of HousingWire, and I'm joined today by Praveen Chandramohan
00:15of CoreLogic.
00:16Praveen, it's so great to talk with you today.
00:19Likewise, Diego.
00:20I'm so happy to be here.
00:21I love the content that HousingWire is producing and bringing a lot of exciting innovations
00:27to the industry and bringing visibility to that.
00:29So love that.
00:31Love that.
00:32So before we dive in, could you briefly introduce yourself and also your role at CoreLogic?
00:37Yeah.
00:38So I've been with CoreLogic for about 10 years, and what I do now is I run a business that
00:45is focused more on leading origination solutions.
00:48So with a focused effort on how do you help customers retain and grow their business.
00:55So we'll talk a lot about that today, but I also lead an originations fulfillment business
01:00that's focused around verifying and qualifying a borrower, which we've done some segments
01:05before that when we spoke about previously.
01:08Mortgage has been a challenging industry for the last couple of years, but maybe we're
01:12starting to percolate a little bit.
01:15So what mortgage industry challenges are you and your team focused on right now?
01:21So when we talk to a lot of our customers, and we do business with a lot of top mortgage
01:26originator lenders and lenders across the spectrum, two themes emerge.
01:32One is how do you use technology to drive down the cost of the loan?
01:36And second, how do I retain and grow my business?
01:40So everyone's looking for top line growth these days.
01:44Some of the industry stats are pretty glaring when you think about the mortgage industry.
01:49There's retention rates in general hover around the 9% to 11% range, which if you think
01:57about it is unheard of when you compare to other industries.
02:02There's some recent stats around borrowers don't go back to their originating loan officers
02:09for repeat business.
02:10They only do that for about 18% of the time.
02:14And when you think about that, it's disheartening because the cost of acquiring a customer is
02:20in the thousands.
02:21The cost of retaining a customer is in the hundreds.
02:24So why wouldn't you want to retain your existing customers?
02:28And then there's also things about how do I grow my customer base?
02:32What do I need to do in getting a better network out there, depending on the model that you
02:37do business with?
02:38So let's dive in on that growth aspect of what you're working on.
02:42How do you help clients with that really kind of dismal retention and recapture rate?
02:50Yeah, so CoreLogic is uniquely positioned to do a lot of things.
02:55So if you think about the background of CoreLogic, at its DNA, at its core, it is a data and
03:02analytics company.
03:03And what we do is, so the vast amount of data sets that we have.
03:07So if you think about 22,000 counties that we have various forms of data acquisitions
03:15from.
03:16We're a company that grew via acquisitions.
03:19So bringing in a lot of the property 360 data underneath, bringing in household analytics,
03:27it just puts us in a position where if you have coverage of all of the 150 million households
03:32in the U.S. and you can provide data and insights about the household to the customers,
03:39then they're able to then use that information to drive more retention.
03:45So largely speaking, I would say the industry approach to retention has been a three-pronged
03:54approach.
03:55Some do all three really well.
03:57Some sort of vary in their spectrum.
04:00The first is all about customer segmentation.
04:02And in the banking world, KYC, know your customer, is a very popular term, which in the mortgage
04:09industry is translating to relationship-based lending.
04:13And the way to do that is really know your customer by creating the right customer segments.
04:19And that's where CoreLogic shines.
04:21We're able to marry property intelligence and household intelligence through all of
04:25the 200 different analytical models that we have, 50 years of historical data that
04:29we have, billions of records that we have around property.
04:33We're able to create a customer segmentation framework for our clients that then they can
04:38use to understand.
04:40And ideally, you'd want to get to customer segment size one, where every interaction
04:46with your customer is personalized for that customer and that customer only.
04:51So that's sort of the first approach.
04:53The second is really reacting to what I would call events that happen.
05:00So very popular in the industry is credit triggers.
05:07The second is MLS triggers.
05:09And off late, we've introduced a brand new technology around location triggers.
05:14And using all of these, you're sort of reacting to what your customer is doing.
05:19So location-like, maybe open house triggers.
05:22Correct.
05:23Exactly.
05:24And so what happens here is you're not only solving for reaching the right audience, but
05:31you're solving for reaching the right audience at the right time, which is timing is very
05:35important.
05:37And the third is probably, I would say, from a cost and retention perspective, the most
05:42effective, which is play the long term, which is how do you create a customer engagement
05:49platform where you engage with your customers and you really create a flywheel for a customer
05:55for life, which is sort of the holy grail that everyone wants, right?
05:58How do I create a customer for life framework?
06:01So that's the retention framework.
06:04And then when you think about growth, it's all about how do I create my buy box and how
06:09do I expand my customer base?
06:11And customers do this in a variety of ways.
06:14One is through understanding what the segment that you want to gain more business and having
06:21various marketing techniques to go reach to them.
06:24The second is really through an indirect growth, which is recruiting the right loan officers
06:29if you're in a distributed retail model, having the right network connections, and expanding
06:35your realtor network, and so on and so forth.
06:37So that's sort of where we see the industry is going, and CoreLogic is uniquely positioned
06:41to help that.
06:42So a lot of different opportunities for retention, recapture, growth.
06:49But if I'm an LO or a branch manager or production leader, do I have to go to like a hundred
06:54different places at CoreLogic to get access to those products, or is it kind of unified
07:00in one place?
07:01Yeah.
07:02No, great question.
07:03So we've been working really hard behind the scenes to invest in a platform called Arraya,
07:09which we're building it as a one-stop shop to access all of these solutions.
07:15And so we launched Arraya last summer, and there's a ton of productized versions of a
07:23lot of the solutions that we just discussed in a way that's consumable for the customer
07:28with just one click.
07:29So things like market intelligence, where you can understand everything about the market,
07:35what loan officers look at the performance, look at the recruiting history, understand
07:40what realtors to connect to.
07:42All of that is packaged in a ready-to-use format within market intelligence.
07:46When you think about precision marketing, it's all about how do I use that location
07:50intelligence to then understand what are my household behaviors so I can reach out to
07:56the customers when they need it the most.
07:59Things like loss leads and payoff analysis, where you understand where your customers
08:06that you did not end up doing business with, where did they go, so you can start to sharpen
08:11your competitive edge.
08:15Things like property intelligence, where you really position your loan officers, and even
08:21in underwriting, your processing team, to spend less time researching things about the
08:25property, but through a click of a button, get everything that you need about a property.
08:30Property characteristics, their propensity scores, their ABMs, their lien information,
08:36everything that you need all in one place.
08:37So we're really, really excited about where ARIA is going, and specifically for the retention
08:43segment, making that a one-stop shop for loan officers or originators to come in and access
08:50that data.
08:51So, as an individual LO, do I have to go to my lender, the company that I work for, and
08:59get them to buy enterprise access to ARIA, or are there individual subscriptions available?
09:05How do people access?
09:06ARIA, the way we think about ARIA is, the goal is to meet the customer where they want.
09:16So if you think about a spectrum of users, so you have individual loan officers, mortgage
09:21brokers, that really want to sort of think about their growth, which then translates
09:26to their company's growth, depending on the channel they operate on.
09:29We've created an e-commerce model, where you could go in, put in your credit card, subscribe
09:36to the product, and you would get full access to all of the tools in ARIA.
09:42For lenders that want a little bit more enterprise model, but don't necessarily want to go through
09:48the motions of creating these large analytics layers themselves, we create user interfaces
09:54and bring this data either in ARIA, or we can integrate to the CRM of your choice and
10:00bring the data over there.
10:02And so you really get the power of all of this data from the ARIA platform, but we try
10:07to meet you where you really need the data, so you don't have to alter your workflow to do that.
10:14Third, which is very unique to CoreLogic, is we also make this data available in a lot
10:19of these cloud marketplaces, and a lot of the larger and more technology-savvy lenders
10:26have started to invest in these massive data lake environments that then makes this data
10:32available from an enterprise perspective.
10:35So we have native cloud integrations to Snowflakes, Databricks, Google, Salesforce, any of these
10:41larger cloud platforms that you can think of, where this data is available in your fingertips,
10:46and then you can start to execute campaigns, customer reach-outs, recruiting loan officers,
10:51networking with realtors, all of that in one place.
10:54This is a big deal, innovation.
10:56I love a unified dashboard, so this is very exciting.
11:00What's on the product roadmap for ARIA in 2025?
11:05Great question.
11:06So ARIA is growing and growing rapidly.
11:09What I'm most excited about that's coming up is a product called One Home Owner.
11:16One Home Owner is all about, when we talked about retention, we talked about homeowner
11:22engagement.
11:23How do you create a customer for life value proposition?
11:25So One Home Owner is all about positioning the lender to create their own personalized
11:33brand experience, but helping customers where they need the help the most, which is homeownership.
11:39If you think about some of the stats, about 4 million customers transact today or every
11:45year in terms of purchasing a new home, but about 85 million don't.
11:52So how do you create an experience where you're not just transacting with the 4 million that
11:58are in market, but you're helping the 85 million that are not in market today?
12:03And One Home Owner is all about that.
12:05So I'm not going to give any spoilers in terms of the features and functions, so we'll hold
12:11on to some of the cool features that One Home Owner has, but the big problem that it is
12:17trying to solve is keeping homeowner at the center, which then creates a value proposition
12:24where a mortgage lender creates a consistent brand experience for the homeowner to make
12:31them live without worrying about a lot of the things that bother a first-time homeowner
12:41around home management, building wealth, the framework around what do I do when something
12:48breaks in my home?
12:50We try to solve all of that.
12:52And from a mortgage lender perspective, it unlocks that customer for life value chain,
12:57and then it's a great flywheel for the lender to be at.
13:00That sounds really interesting.
13:01Maybe we'll have a future conversation where we can talk more about that product.
13:05Yes.
13:06I'm really excited about where Arraya is going and how we can unlock all of the retention
13:12and growth needs for our clients.
13:14Well, Praveen, this has been a really interesting conversation.
13:17Thank you so much for joining me today.
13:19Diego, thank you so much.
13:21Look forward to having more conversations in Arraya in the near future.
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