HomeBanc Mortgage Corp. of Atlanta has hired Michael Steele, a former director of marketing for Coca-Cola Co.
Mr. Steele, who coordinated brand-building initiatives and sports marketing at Coca-Cola, will examine the Atlanta-based mortgage company's marketing and revise its strategy.
The hiring comes as the mortgage industry hustles to customize mortgage products and streamline the lending process to attract borrowers. Mortgage companies are also drawing on the Internet and other technological innovations to expand their business with consumers and corporate clients.
Reflective of the same trend, secondary market giant Fannie Mae has embarked on a strategy of customization, coming up with products that expand the market and fit the consumer. One new product is a mortgage designed for people who buy energy-efficient homes; others in development would give borrowers the financial flexibility to meet educational expenses or plan for retirement.
But such creative marketing has been largely absent from the mortgage banking business, said Patrick S. Flood, president of HomeBanc. Hiring Mr. Steele presents "an opportunity to break some of the old trends," he said.
The banking and financial services industry is a "new frontier" for marketing, Mr. Steele said, adding that he hopes consumers will learn to recognize mortgage brands just as they know what varieties of Coke they can choose.
"People in this industry generally remember the mortgage company and not brands," he said. "The customer ultimately dictates product needs. Typically in this industry, it's been rates" that distinguish one product from another.
Mr. Steele, who joined HomeBanc several weeks ago, said his initial strategy would be "extending a personal invitation" to borrowers to come into a HomeBanc location.
His main role will be to create brands to meet the needs of various demographic groups. For example, one brand would be for people moving into a first home, and another for those upgrading. Other loans could target the growing market of minority homebuyers and the growing number of homeowners who are relocating.
Mr. Flood said HomeBanc is paying particular attention to the purchase market - as opposed to the refinance market - because buyers are more likely to stick with a lender.
Mr. Steele said it is possible to double or triple the company's 10% market share. Mr. Flood said HomeBanc, already the top residential originator in Atlanta, hopes to become the leader in Florida.
In June, HomeBanc's retail mortgage volume was $290 million, up from $219 million in June 1998. The lender expects to close more than $3.2 billion of home mortgages this year through its operations in Georgia and Florida.
