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How Guaranteed Rate’s Hispanic Campaign Became its Best Ever

Guaranteed Rate, a Super Bowl advertiser and the nation's third-largest retail mortgage lender, is betting on reaching Hispanic consumers on their terms.

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Mortgage Marketing: Guaranteed Rate, a Super Bowl advertiser and the nation’s third-largest mortgage lender, is betting on reaching Hispanic consumers on their terms.  Last September, the Chicago-based company introduced an extensive Spanish-language mortgage program. It followed up with its first-ever advertising campaign specifically targeting the Hispanic demographic. Portada interviewed for Guaranteed Rate Camilo Escalante, Executive Director of Diverse Segments.

The U.S. Hispanic economy is thriving. At 48.6%, the Urban Institute projects that 70% of new home buyers in 2040 will be Hispanic from the current 51% (2022). However, according to the Consumer Financial Protection Bureau,  in 2021, there were 13.1 million mortgage transactions (purchase and refinance) in the mortgage industry, in a record year. But only 6% of all mortgage transactions were to Latinos in 2021. Regarding homeownership, the challenge for Hispanics, particularly Spanish-dominant and first-generation immigrants, is affordability and inventory. For many corporations, another challenge lies in allocating resources to market appropriately to this audience and opportunity. Guaranteed Rate, the third largest retail mortgage lender in the U.S., is starting to do just that… and the initial results are promising.

Mortgage Marketing: Enabling LEP Consumers

According to Escalante, more than 60 million Latinos are in this country.  Over 40 million are bilingual and 16 million are not English proficient (LEP, Limited English Proficiency). “They are hard-working people, and the most important transaction of their lifetime, purchasing a home, does not have documentation in Spanish. No company has built the platform to reach out to this community,” Escalante claims.

Mortgage Marketing
Camilo Escalante, Executive Director of Diverse Segments for Guaranteed Rate

That is why Guaranteed Rate’s mortgage marketing machine built the first end-to-end mortgage application in Spanish, providing language accessibility. Consumers can get loan approval in less than 24 hours. The entire process is in Spanish, including all the paperwork and access to bilingual loan officers so that folks understand the process & know exactly what they’re signing. Spanish is used throughout the process, including automated email approvals, loan disclosure, etc.

According to Escalante, one obstacle in the process is the fact that most U.S. states have restrictions and different rules regarding how financial institutions should market to Hispanics. For instance, you must provide the disclosure and application in Massachusetts in Spanish. So you need to provide the infrastructure. “This is why most lenders don’t market in Spanish.  We are the first company to do it,” says Escalante. He adds that there is no company that has a clear lead in mortgage lending to Latino consumers: “Not one has a 5% market share. “Most lenders do not have a cohesive strategy to retain, engage and reach out to diverse communities. We now have a platform to serve diverse communities better nationwide,” Escalante asserts.

Advertising in Spanish-language

After introducing its extensive Spanish-language mortgage program last September, Guaranteed Rate started rolling out its first-ever Hispanic-targeted advertising campaign based on the spot La Casa de Mis Suenos . This is the first time the mortgage lender is advertising in Spanish.  The campaign, created and managed in-house, included online language targeting through Meta and LinkedIn. Key metrics were language preference and professionals who do business with the Latino community. Escalante said the campaign was activated in the top 25 affordability markets for first-time home buyers and in heavily populated Hispanic areas. Some major hubs were included, like New York City, Los Angeles, Chicago, and New Jersey, but also  “many other cities that have gotten migration over the last couple of years that are affordable and seeing growth.” Escalante adds that Univision TV and radio spots were also used in strategic markets.
“This is the best-performing asset that Guaranteed Rate has ever produced, reflecting how underserved the Spanish-dominant market is,” says Camilo Escalante, Executive Director of Diverse Segments for Guaranteed Rate.  The campaign produced a video open rate of 51%. (To be considered open, the video has to be watched for at least 15 seconds.). Guaranteed Rate has received over 2,000 mortgage applications from Spanish-speaking borrowers from September 2022 to March 2023. After this first initiative, Guaranteed Rate plans to expand its Hispanic mortgage marketing efforts.

 

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