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Introduction to the Xactus Mortgage Intent Index

In a transformative move for the mortgage industry, Xactus has launched its Xactus Mortgage Intent Index (XMII), establishing a groundbreaking method of measuring borrower intent. This innovative index, derived from millions of credit pull transactions processed through Xactus’ advanced verification solutions, provides lenders and market participants with invaluable insights into mortgage demand well ahead of conventional indicators.

Understanding the Index

The XMII is not just another statistical tool; it's a paradigm shift in how industry stakeholders can anticipate and act on market shifts. By analyzing verified mortgage credit inquiries, the index reveals borrower intent, enabling lenders to transition from a reactive to a proactive approach in strategy formulation. Shelley Leonard, President of Xactus, comments on the methodology, emphasizing how it surfaces borrower intent even before a loan application is ever filed—making it a crucial asset in the mortgage ecosystem.

Recent Performance and Significance

A key indicator of the XMII’s effectiveness was its response to the decline in mortgage rates observed in mid-September, which prompted a notable rise of 9.82% in the index compared to the previous month. This surge demonstrates the XMII’s capability to project increased borrower activity before it influences actual loan application volumes, offering a clear pathway for lenders to actively engage with potential borrowers.

Craig Ungaro, Chief Operating Officer at AnnieMac Home Mortgage, emphasizes the importance of benchmarking in understanding organizational performance, specifically within an industry characterized by vast seasonal fluctuations—typically swinging between 50% to 80%. With XMII, lenders now have access to a legitimate leading forecasting tool that enhances their ability to plan and execute strategic initiatives, ultimately mitigating risks associated with inaccurate forecasting.

Addressing Market Dynamics

The mortgage market is frequently impacted by rapid rate changes and shifting consumer behaviors. In response, the XMII equips lenders with the foresight they require to adjust their marketing, staffing, and pricing strategies. Gone are the days when lenders could only react to market conditions; instead, they can now anticipate shifts and respond in real time, fostering a significant competitive advantage.

Traditional indices often focus exclusively on closed loans, applications, or rate locks, all of which are retrospective measures. In contrast, the XMII leverages anonymous, aggregated credit pull data to provide daily and weekly updates on borrower activity—covering all stages from pre-application to pre-closing.

Conclusion: The Future of Mortgage Demand Analysis

The launch of the Xactus Mortgage Intent Index represents a pivotal development in the mortgage sector. The index not only offers real-time insights into borrower demand but also positions lenders to excel in a marketplace that is becoming increasingly complex and dynamic. By utilizing the XMII, lenders can enhance their operational efficiency while better serving the borrowers who rely on them. For more information about this innovative index and how it can transform your mortgage strategy, visit Xactus.