Mortgage and home equity lenders sent approximately 750 million secured loan offerings between January and June 2008, half the 1.5 billion during the first six months of 2007, according to a new study.
These types of solicitations have been steadily declining every quarter since the first quarter of 2007, according to Mintel Comperemedia.
Mortgage mailings fell by 53% between the two periods, while home equity product offers dropped 44% during the same period.
Mortgage direct mail increased during the second quarter of this year over the first quarter’s level, while the volume of home equity solicitations continued to fall. Mailers sent out 240 million mortgage offers during the most recent quarter, up from 220 during the first quarter.
“Though mortgage mail volume remains far lower than a year ago, this is the first uptick we’ve seen in two years,” said Farah Huq, senior analyst at Mintel, in a statement. “It could be because spring is a prime ‘buying’ season or it could be a sign that lenders are slowly beginning to increase direct mail. Still, we don’t expect significantly higher mail volume until the market settles and consumer confidence returns.”
Increases in volume by Chase and Capital One were primarily responsible for the uptick, according to Mintel’s research. Chase upped its mail volume by 90%, while Capital One boosted its mail volume by 140% between the quarters.
