SAN MATEO, Calif. - Dorado Corp., an e-commerce technology company for the financial services industry, announced Wednesday that it is offering a software product geared to help banks retain customers in a refinancing boom.
The product, called e-Retention, is to be marketed to large U.S. mortgage banks that want to reduce portfolio runoff or attract customers through refinancing.
With the average rate for a 30-year mortgage hovering at around 7% and refinancing volume exploding, many observers said the industry is in the midst of a refinancing boom. Dorado noted that refinancing activity has risen from about 20% of residential mortgage applications in October to more than 60% in early January, though this share has gone down slightly since.
The software product "maximizes the bank's loan officer and call center efficiency to effectively address consumer demand in the new refinancing boom," said Thomas M. Lounibos, president and chief executive officer of Dorado, in a press release. He said, "e-Retention will provide banks with the means to offer their existing customers what they want and need and thus decrease the runoff normally associated with a refinance market."