The Loan Wizard - NCSHA...with local lenders to create the Loan Wizard – a step-by-step series of questions that guides potential homebuyers through Alaska Housing’s mortgage offerings.

444 North Capitol Street NW, Suite 438 | Washington, DC 20001 | 202-624-7710 | [email protected] | ncsha.org

The Loan Wizard

Alaska Housing Finance Corporation Homeownership: Empowering New Buyers

HFA Staff Contact Soren Johansson

[email protected]

2019 Annual Awards for Program Excellence Entry

AlaskaHousingFinanceCorporationCategory:Homeownership//EmpoweringNewBuyers

Entry:TheLoanWizard

PROGRAMINTRODUCTIONANDOVERVIEWSinceitsfoundingin1971,AlaskaHousingFinanceCorporation’smortgageoperationshavefueledtheagency,offeringeverythingfromhomebuyereducationtohomeloans.AlaskaHousinghasavarietyofprograms–somany,infact,thatitmaybecomeintimidatingforAlaskanstodeterminewhichloansarerightforthem.Withavastportionofhomebuyingandmortgageactivityhappeningonline,AlaskaHousingrecognizedaneedtohelpAlaskansbetternavigatethehomeloanprocessrightfromtheirsmartphonesortablets.EntertheLoanWizard–AlaskaHousing’sdigitalmortgagetool.Beginningin2018andcontinuinginto2019,AlaskaHousingpartneredwithlocallenderstocreatetheLoanWizard–astep-by-stepseriesofquestionsthatguidespotentialhomebuyersthroughAlaskaHousing’smortgageofferings.ThisallowsAlaskanstoquicklyfindthemostappropriateproductsfortheirsituation,whetherthey’reafirst-timebuyer,aveteran,livinginruralAlaska–orperhapsallthree.Bringingmorepeopleclosertohomeownership. AninnovativetoolThegoalofthistoolistohelptaketheguessworkoutofloanselectionandtosimplifytheprocess.BecauseAlaskaHousingreliesonlendersfordirectconsumercontact,AlaskaHousingstaffworkedwithpartnerlenderstoproduceadigitalsolution.TheLoanWizardhelpsbothhomebuyersandlendersdistinguishbetweenandsortthroughthemanyAlaskaHousingloansthatsoundsimilarandmaygetconfused–example:Tax-ExemptFirst-TimeHomebuyervs.TaxableFirst-TimeHomebuyer.ThedigitaltoolcreatedanewlevelofassistancebyofferingaseamlesswaytobringAlaskaHousinghomeloanstothefingertipsofpotentialhomebuyersandlenders.AreplicabletoolThistoolisreplicablebyanyHFAthatseesaneedtoinform,educateandpreparehomebuyersforthemortgagediscussionwithhis/herlender.AlaskaHousingcontractedin-statedigitalandadvertisingpartnerstohelpcreatethetool. RespondingtoanimportantstatehousingneedAccordingtotheHomeBuyingInstitute,confusionovertheloanprocessisoneofthetoptwocomplaintsofthehomebuyingprocess.WiththeLoanWizard,prospectivehomebuyersandAlaskalendersareguidedthroughaseriesofquestionsabouttheircurrentsituationandpotentialhomeneeds,filteringloanoptionsbasedontheirresponsesandnarrowingtheirsearchoftwodozenloansavailablethroughAlaskaHousing.Alaskaisthelargeststategeographically,with239,000Alaskanslivinginruralcommunities.TheLoanWizardallowspotentialhomebuyersinruralAlaska

AlaskaHousingFinanceCorporationCategory:Homeownership//EmpoweringNewBuyers

Entry:TheLoanWizard

communitiestoeducatethemselvesaboutruralloanoptionswhentheydon’thaveaccesstolenderstowalkthemthroughthoseoptions. DemonstratingmeasureablebenefitstoAlaskaHousingtargetedcustomersThetooleffectivelytargetsAlaskanssearchingforhomeloanoptions,usingpartnerreferralsanddigitalcommunicationstomaximizereachandensurethatAlaskaHousingiscapturingasmanyprospectivehomebuyersaspossible.Theuser-friendlytoolsavesbothhomebuyersandlenderstimeandenergy,leadingtoasatisfyingexperience.AproventrackrecordofsuccessAlaskaHousing’stargetaudienceforthistoolishomebuyers,AlaskaHousing-approvedlendersandrealestateprofessionals.TheLoanWizardwillrequireadditionaltargetedmarketingaspeoplemoveawayfromthetraditionalwayofhomeloanshopping.Nevertheless,AlaskaHousinghasseenstrongengagementsinceitslaunchinSeptember2018.AsofApril2019,theLoanWizardhasbeencompleted820times.ProvidingbenefitsthatoutweighcostsTheLoanWizardemploysbranchinglogic(if/then),wherequestionsmaybeposed,orskippeddependingonpreviousanswers.ThisensuresthatallpossibleAHFCloanofferingsarepresentedforeachhomebuyerandtheirsituation,providinganemotionalbenefitof“thisistherighthomeloanforyou.”DemonstratingeffectiveuseofresourcesThistoolhasbeenfundedby$4,500fromAlaskaHousing.TheLoanWizardisbasedoffanexistingLoanFinderwebapp.Thedesignframeworkissimilar,buttheunderlyingfunctionalityisnew.EffectivelyemployingpartnershipsPartnershipswerekeythroughtheentireimplementationandlaunchofthetool.AlaskaHousingreliesonlendingpartnersforthemajorityofitsmortgageactivityandrecognizesthatlendersaretheonesinthefieldprovidingone-on-oneadvicetohomebuyers.PriortothelaunchoftheLoanWizard,AlaskaHousingleverageditsexistingrelationshipwith21ofAlaska’stoplendersandinvitedthemtogetasneakpeakofthenewtoolandencouragedeachlendertoprovidetheirprofessionalfeedback.Onceallfeedbackwasreceived,AlaskaHousing’smortgagedepartmentworkedwithadigitalagencytorefinetheproduct.Thetoollaunchedatthe2018AlaskaRealtorsConventioninSeptemberwhenAlaskaHousingstaffdressedaswizardsandpresentedittomorethan150realestateprofessionals.

AlaskaHousingFinanceCorporationCategory:Homeownership//EmpoweringNewBuyers

Entry:TheLoanWizard

Here’swhataoneofthemhadtosay:

• “AlaskaHousing’sLoanWizardisanexcellenttoolthathelpsguidepotentialhomebuyersthroughthemortgagemazetotherightloanprograms,”saidRichardMantylaofResidentialMortgage.

AchievingstrategicobjectivesAlaskaHousing’smissionis“toprovideAlaskansaccesstosafe,qualityandaffordablehousing.”Avitalserviceinthatmissionishomeownership.ThecurrentAlaskaHousingcommunicationsplanidentifiestailoringbusiness-to-businesscommunicationtowardapprovedlendersandrealestateprofessionalsasitstoppriority.OnestrategytowardthatgoalistosimplifyinteractionwithAlaskaHousingthroughmoreuser-friendlydigitaltools.TheLoanWizardhelpsmeetandadvanceallofthosegoalsandstrategiesbyprovidingawayforlendersandtheircustomerstonavigateAlaskaHousing’srangeofmortgageproducts.

AlaskaHousingFinanceCorporationCategory:Homeownership//EmpoweringNewBuyers

Entry:TheLoanWizard

VisualAids1.Life-sizecutoutusedduringthedebutoftheLoanWizardattheRealtorConvention.AttendeeswereencouragedtotakeaphotoastheWizard.

2.Businesscardscreatedtohandouttolenders.

AlaskaHousingFinanceCorporationCategory:Homeownership//EmpoweringNewBuyers

Entry:TheLoanWizard

3.Promotionalpop-upbannerusedathomeshows,conferences,etc.

4.HomepagetotheLoanWizarddigitaltool.

AlaskaHousingFinanceCorporationCategory:Homeownership//EmpoweringNewBuyers

Entry:TheLoanWizard

5.PhotosfromtheLoanWizardlaunch.