This summer, it’s time to bring back a term not recently heard for a while (other than, for our New England neighbors, warmth). We are talking about the HELOC, which the demand for has been making a comeback, after being quieted by the Great Recession of 2008. With the stabilization of the real-estate market and property values going up, home-equity lines of credit and home-equity loans grew 8% in the first quarter from a year earlier, according to industry publication, Inside Mortgage Finance.
With the demand on the rise, now is the time for credit unions to begin promoting this product once again, Jeff Gray, Senior Vice President for Synergent, explained. “This trend provides a great opportunity for credit unions to not only increase awareness of this product, but also to harness the power of their member data,” he said. “As HELOCs are certainly not a ‘one size fits all’ product, Direct Marketing Services works with credit unions to create campaigns targeted to the members that are likely ready to take this step.”
Some demographic ideas for targeted HELOC campaigns include:
- Members who own homes and do not have Home Equities with your credit union
- Members that have been inactive on their HELOC lines of credit
- Member demographics that indicate lifestyle changes or events, as funds can be used for weddings, college tuition, etc.
Learn more about the difference data mining can make, read case studies, and start to envision your next HELOC campaign!