Mortgage lenders and originators use FinLocker to recover turned down applicants
The overall denial rate for home purchase mortgage applications was 20.7% in 2024, according to the Federal Reserve Bank of New York. Drilling down, the denial rate for conventional conforming home purchase applications was 8.23%. In comparison, 14.58% of FHA, 8.19% of conventional non-conforming and 8.28% of VA loan applications were denied, according to the CFPB.
Denial rates for refinance applications were 25.6% overall. Applications for FHA refinance loans were more likely to be denied (41.35%), followed by conventional conforming loans (27.60%) and conventional non-conforming (22.86%). Applications for VA loan refinances were the least likely to be denied (20.33%) in 2024, according to the CFPB.
Consumers are often declined with a form letter with little to no advice on what actions can improve their loan eligibility. Rather than leave denied applicants fending for themselves, mortgage originators can utilize a private-labeled FinLocker to recover turned-down applicants.
FinLocker addresses the most common reasons for mortgage denials with a personalized action plan, intuitive tools and educational resources to overcome their initial reasons for the denial and improve their loan eligibility so their next mortgage application will be stronger.
Mortgage originators receive consumer-permissioned data insights so they can monitor the progress of their borrowers and know when to connect to offer additional advice or start their new mortgage application.
How turned down applicants use FinLocker to prepare for homeownership
- Credit score, credit report, and credit monitoring through TransUnion
- Make informed credit actions and decisions using a credit simulator and receive actionable tips with credit compass
- View and manage all financial accounts in one place
- Educational resources and videos to improve financial literacy and learn about the mortgage process
- Home affordability calculator recommends a home budget and mortgage payment suitable for the homebuyer’s income
- Track their progress toward mortgage readiness and receive a personalized action plan to overcome challenges
- Create trackable financial goals and create budgets to save for down payment and closing costs
- Spending analysis and budgeting tools to manage and pay down debt to qualify for a mortgage
- Start their property search and see which homes may qualify for down payment assistance
- Financial documents can be securely stored and shared directly from their app with their originator to initiate a mortgage application