Mortgage and home equity direct mail has fallen fifty percent from the first half of 2007, according to new data from Mintel Comperemedia.
Mortgage lenders sent an estimated 750 million secured loan mailers from January to June of 2008, down from 1.5 billion sent during the same period a year earlier.
“Economic struggles have hit lenders hard,” explains Farah Huq, senior analyst at Mintel. “As companies work through a shaky market and new legislation, they’re scaling back notably on direct marketing. Many seem to be waiting for winds of change before they send more offers.”
Mortgage offers declined by 53 percent year-over-year, while home equity loan offers slid 44 percent.
The company did note that mailers increased from the first quarter to the second quarter by eight percent, but that’s probably more attributable to the historical home buying season than anything else.
Despite the overall downturn, mortgage lenders like Chase and Capital One looked to take advantage of the situation, pumping up offers by 90 percent and 140 percent, respectively, between quarters.
The company expects advertising to increase once the market settles down and consumer confidence returns.
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