Lenders are rapidly turning to the mail and telephone as low-cost ways of marketing all kinds of mortgages-prime, subprime, and home equity loans.

Direct marketing is hardly new in the mainstream mortgage business. Lenders have long been pitching refinancings to their existing customers by these routes in an effort to avoid the runoff of loans from their portfolios. In this specialty, new techniques are helping them better identify those most likely to refinance.

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