Webcast - Creative Best Practices for Mortgage Marketing

Boom!
Ten Creative Best Practices to Kick Up
the Effectiveness of Your Mortgage Lending
May 15, 2014
© 2014 Harland Clarke Corp. Loan Magnet is a trademark of Harland Clarke.
All other marks are the property of their respective owners. All rights reserved.

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Stay with us for Q&A at the end of this presentation.
A video replay of this webinar will be sent to you within the next week.
linkedin.com/company/Harland-Clarke
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plus.google.com/+HarlandClarke
youtube.com/user/HarlandClarkeCorp
www.HarlandClarke.com

Bios
Kris Niblett, Creative Director
  20+ years experience creating strategic, award-winning, multi-channel
direct marketing communications for financial and other industries
  Drives results for brands including PNC Bank, TD Bank, KeyBank, Wachovia
Bank, American Express, BB&T Bank, People’s Bank and Zions Bank, as well
as many community banks and credit unions
  HC creative team has captured 70+ awards, including Hermes Awards, DMA
Echo Awards, Graphic Design USA Awards and the London International
Advertising Award
Stephen Nikitas, Senior Marketing Strategist
  30+ years of experience in strategic planning, marketing, public relations
and executive speechwriting
  Provides consultative services to banks and credit unions
  Crafts marketing and retail strategies and campaigns that take advantage of
existing market and financial conditions in order to grow targeted portfolios
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1.  Mortgage Lending Trends
2.  Strong Creative Gives You an Edge
3.  Do It Right, Reap the Rewards
  Creative Challenges
  Key Mortgage Marketing Strategies
  Direct Marketing Creative Fundamentals
4.  10 Creative Best Practices: Mortgage and Refi
5.  How to Build It: Key Creative Elements
6.  Legal Requirements
7.  In-Market Examples
8.  Beyond Mail
9.  Q&A
Today’s Agenda
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Award-winning Creative for Financial
Boom! Let’s make an impact!
When it comes to Creative Best Practices for your marketing initiatives,
you’ll find everything you need right here:
  Financial industry expertise
  Direct marketing best practices
  Award-winning creative
  Integrated multi-channel execution
We live and breathe financial services. Design. Copywriting. Creative
Strategy. Our creative team has experience in pulling it all together to drive
results across the customer lifecycle.
  Acquisition, onboarding, activation/utilization, cross-sell, retention
  Consumer and business
  Lending, deposits, M&A
  Integrated across all channels: mail, email, mobile, web, ATM, branch
  Delivering a positive customer brand experience at every touch
Today, let’s talk mortgage!
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Award-Winning Creative
30 Awards in 2013-2014
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•  Platinum Marketing Effectiveness Award
•  Platinum MarCom Award
•  2 Platinum Hermes Creative Awards
•  5 Gold Hermes Creative Awards
•  4 Honorable Mention Hermes Creative Awards
•  4 Gold MarCom Awards
•  4 Silver Communicator Awards
•  4 Graphic Design USA Awards
•  Bronze Summit Creative Award
•  2 APEX® Awards of Excellence
•  IABC Gold Pen
•  IABC Gold Quill
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1.  Rising Rates
  2012: rush to lend – mail volumes peaked
  2013: scaled back on mail efforts as rates rose
  2014: purchases exceed refinances
•  Originations will total $1.1T in 2014; increase to $1.2T in 2015
•  Purchase originations will total $661B in 2014; increase to $808B in 2015
•  Refinance originations will total $419B in 2014; drop to $411B in 2015
2.  More Regulation
  CFPB mortgage regulations are causing pause among lenders
•  Investors have discontinued loans with interest rates that adjust after only three years
  Bigger banks pulled back, opening doors for smaller lenders
3.  Lower Credit Score Acceptance
  Mortgage credit availability increased in Q1 despite the reduction in:
•  Interest-only products
•  Loans with terms greater than 30 years
•  3/1 ARM loans
  Increase in credit availability was driven by:
•  Broader offering of jumbo loans
•  Streamlined refinance products
•  Additional 5/1 ARM offerings
Mortgage Lending Trends
7

Audience Data/
Analytics
Offer
Creative
3 key elements for effective direct marketing
of mortgage lending products
  Audience data/targeting
  Offer
  Creative
It takes all 3 to succeed!
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Strong Creative Gives You an Edge

1.  Fierce competition
  How to stand out?
  How to elicit response
2.  Product complexity
  Rate offers
  Rate structure (variable, fixed)
  Closing costs
  Rate locks
3.  Legal requirements
4.  Onerous disclosure, opt-out language
Creative Challenges
9

Key strategies from 2013
  Target renters/first-time home buyers
•  Easy
•  Affordable
  Cash incentives at beginning and end of process
  Reduced closing costs
  Relationship benefits for customers
•  Rate discounts
•  Cash credits
  Easy access to help
  Email for customer cross-sell
•  Focus on low rates
•  Easy process
Shift in messaging from late 2013 to 2014
  From “Historically low rates” to “Hurry! Borrow before it’s too late!”
Key Mortgage Marketing Strategies
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1.  Stand out by cutting through mailbox, inbox clutter
2.  Keep messaging relevant to your audience and the economy
3.  Call out competitive rate offer that interrupts rate shopping
4.  Make it urgent with offer end date
5.  Emphasize key benefits and product features
6.  Keep it readable to keep prospect engaged
7.  Leverage brand to strengthen value proposition
8.  Strong, clear call to action makes it urgent
9.  Offer response channel options for easy response
Creative uses copy and design to serve it all up
in the most relevant, compelling way!
Direct Marketing Creative Fundamentals
11

1.  FORMAT: #10 Envelope
o  Consultative approach for customers
o  More promotional approach for prospects
o  Enough real estate to tell a compelling story
o  Ensures privacy
o  Cost-efficient
o  Use same format for all segments to reduce costs
2.  RATE is king: Flaunt it if you’ve got it
o  Firm offer of credit
o  Low rate, waived or reduced closing costs
o  High-profile Johnson Box
3.  PRE-SCREENED call out
  Pre-Selected to avoid new reg issues
  Invitation To Apply (ITA) if not pre-selected
10 Creative Best Practices – Mortgage and Refinance
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4. REASONS WHY
o  Origination mortgage loan – A good deal with a company you trust!
•  Great rate, no or low closing costs
•  Confidence! We’re here to help
o  Refinance – It’s smart!
•  Lower your monthly payments
•  Pay off your mortgage faster
•  Switch from adjustable rate to fixed rate
•  Consolidate and pay off debt (equity)
5. CUSTOMER VS. PROSPECT
o  Customer: consultative tone; position offer as “customer bonus”
o  Prospect: cash/deal sweeteners can make the difference
6. LEVERAGE BRAND
o  Differentiating
o  A trustworthy brand is part of the value proposition
13

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7. URGENCY
o  Reasons to get and use now: historically low rates
o  Tie offers to specific end date
o  Restate end date in letter postscript
8. FAST, EASY CLOSING – a good experience
o  Make process feel easy
o  You – a PERSON – are here for them every step of the way
9. CLEAR CALL-TO-ACTION
o  Tell customer or prospect exactly how to apply
o  Make it sound easy
o  Make the offer pop – explain exactly how to get offer
10. EASY TO RESPOND
o  Multiple, non-conflicting response channels: call, click, visit, QR code

How to Build It
Key Creative Elements
Shopper Alert example
1.  Mail and email trigger program
targeting consumers shopping for
credit products including
Mortgage, HELOC, Home Equity
Loan, Auto Loan, Personal Loan
2.  Designed to interrupt shopping
behaviors by communicating in
market in super-fast fashion
3.  Built on creative best practices
for lending
4.  Applicable to your mortgage
lending initiative
15
Pre-Selected for John Smith
You can choose to stop receiving “prescreened” offers of credit from this and other companies by calling toll-free
1-888-567-8688. See PRESCREEN & OPT-OUT NOTICE†
on other side for more information about prescreened offers.
FI MAILING ADDRESS
John Smith
((XFULLNAME2))
((XADDRESS1))
((XADDRESS2))
((XCITY)), ((XSTATE)) ((XZIP))-((XZIP4))
Locations
Branch Location1
Address
Phone Number
Branch Location2
Address
Phone Number
Branch Location3
Address
Phone Number
Home Sweet Home
Use your pre-selected
YourFI Name mortgage to buy a
bigger home, smaller home, or
enjoy a lower payment on your
existing home.
Act Now!
Accept this offer by
((Month XX)), ((Year)), and save up to
$XXX.XX more in closing costs.3
Dear John Smith,
It’s the perfect time to get a mortgage—because as a YourFI Name customer/
member, you’re pre-selected1
for an APR as low as X.XX%2
to buy a new home or
reduce the payment on the home you live in now. Plus we’ll waive up to $X,XXX.XX
off your closing costs3
.
Great Mortgage Rates—And Great Mortgage Options
At YourFI Name, you have lots of choices—whether you’re buying new, refinancing,
or just making a few improvements!
Conventional fixed-rate first mortgage—same low rate for the life
of your mortgage.
Adjustable-rate mortgage (ARM)—lower rate for the first few years of your loan.
Home Equity Line—a variable-rate credit line that’s available when you need it
to make home repairs, upgrades, or improvements.
Home Equity Loan—like an equity line, but with a fixed rate and predictable
monthly payment.
FHA Loan—lower down payment and closing costs, easier to qualify.
Call The Lender You Know, Start Saving Now!
For local decision-making, a fast closing, and dependable service, work with the
local lender you already know. We have convenient locations and a friendly, helpful
staff ready to help you save money. Call 800-000-0000 before rates go up!
Sincerely,
Signatory Name
Signatory Name
Signatory Title
Accept your YourFI Name Mortgage today.
CALL: 800-000-0000
CLICK: yourfiname.com/mortgage
COME IN: Convenient locations to serve you
HURRY—offer ends April 28, 2014!
Plus, save up to$
500in closing costs!3
Right Here, Right Now!
You’re pre-selected1
for a mortgage loan as low as
3.25% APR
2

FI MAILING ADDRESS
John Smith
((XFULLNAME2))
((XADDRESS1))
((XADDRESS2))
Locations
Branch Location1
Address
Phone Number
Branch Location2
Address
Phone Number
Branch Location3
Address
Phone Number
Home Sweet Home
existing home.
Act Now!
Dear John Smith,
.
of your mortgage.
monthly payment.
Sincerely,
Signatory Name
Signatory Name
Signatory Title
CALL: 800-000-0000
Plus, save up to$
3.25% APR
2
Hero Rate with
Firm Offer of Credit
•  Pre-selected
•  Closing cost offer
•  Urgency – there’s still time
•  Mortgage options
•  Call-to-action
•  Personalization
•  FCRA-compliant disclosures
16

FI MAILING ADDRESS
John Smith
((XFULLNAME2))
((XADDRESS1))
((XADDRESS2))
Locations
Branch Location1
Address
Phone Number
Branch Location2
Address
Phone Number
Branch Location3
Address
Phone Number
Home Sweet Home
existing home.
Act Now!
Dear John Smith,
.
of your mortgage.
monthly payment.
Sincerely,
Signatory Name
Signatory Name
Signatory Title
CALL: 800-000-0000
Plus, save up to$
3.25% APR
2
• Hero rate with firm offer of credit
Pre-selected
• Closing cost offer
• Urgency – there’s still time
• Mortgage options
• Call-to-action
• Personalization
• FCRA-compliant disclosures
17

FI MAILING ADDRESS
John Smith
((XFULLNAME2))
((XADDRESS1))
((XADDRESS2))
Locations
Branch Location1
Address
Phone Number
Branch Location2
Address
Phone Number
Branch Location3
Address
Phone Number
Home Sweet Home
existing home.
Act Now!
Dear John Smith,
.
of your mortgage.
monthly payment.
Sincerely,
Signatory Name
Signatory Name
Signatory Title
CALL: 800-000-0000
Plus, save up to$
3.25% APR
2
• Pre-selected
Closing cost offer
• Call-to-action
• Personalization
18

FI MAILING ADDRESS
John Smith
((XFULLNAME2))
((XADDRESS1))
((XADDRESS2))
Locations
Branch Location1
Address
Phone Number
Branch Location2
Address
Phone Number
Branch Location3
Address
Phone Number
Home Sweet Home
existing home.
Act Now!
Dear John Smith,
.
of your mortgage.
monthly payment.
Sincerely,
Signatory Name
Signatory Name
Signatory Title
CALL: 800-000-0000
Plus, save up to$
3.25% APR
2
• Pre-selected
Urgency – there’s still time
• Call-to-action
• Personalization
19

FI MAILING ADDRESS
John Smith
((XFULLNAME2))
((XADDRESS1))
((XADDRESS2))
Locations
Branch Location1
Address
Phone Number
Branch Location2
Address
Phone Number
Branch Location3
Address
Phone Number
Home Sweet Home
existing home.
Act Now!
Dear John Smith,
.
of your mortgage.
monthly payment.
Sincerely,
Signatory Name
Signatory Name
Signatory Title
CALL: 800-000-0000
Plus, save up to$
3.25% APR
2
• Pre-selected
Mortgage options
• Call-to-action
• Personalization
20

FI MAILING ADDRESS
John Smith
((XFULLNAME2))
((XADDRESS1))
((XADDRESS2))
Locations
Branch Location1
Address
Phone Number
Branch Location2
Address
Phone Number
Branch Location3
Address
Phone Number
Home Sweet Home
existing home.
Act Now!
Dear John Smith,
.
of your mortgage.
monthly payment.
Sincerely,
Signatory Name
Signatory Name
Signatory Title
CALL: 800-000-0000
Plus, save up to$
3.25% APR
2
• Pre-selected
Call-to-action
• Personalization
21

FI MAILING ADDRESS
John Smith
((XFULLNAME2))
((XADDRESS1))
((XADDRESS2))
Locations
Branch Location1
Address
Phone Number
Branch Location2
Address
Phone Number
Branch Location3
Address
Phone Number
Home Sweet Home
existing home.
Act Now!
Dear John Smith,
.
of your mortgage.
monthly payment.
Sincerely,
Signatory Name
Signatory Name
Signatory Title
CALL: 800-000-0000
Plus, save up to$
3.25% APR
2
• Pre-selected
• Urgency – there's still time
• Call-to-action
Personalization
22

†
PRESCREEN & OPT OUT NOTICE
This “prescreened” offer of credit is based on information in your credit report indicating that you meet certain
criteria. This offer is not guaranteed if you do not continue to meet our criteria and other factors bearing on your
creditworthiness (including acceptable property collateral, income and employment history). If you do not want
to receive prescreened offers of credit from this and other companies, call the consumer reporting agencies
toll-free at 1-8885-OPT-OUT (1-888-567-8688); or write
TransUnion Opt Out Request, P.O. Box 505, Woodland, PA 19094-0505
Experian Consumer OPT-OUT, P.O. Box 919, Allen, TX 75013
Equifax Options, P.O. Box 740123, Atlanta, GA 30374-0123
1 We used information on you that we obtained from a consumer reporting agency in connection with this “Pre-Approved”
offer. You were selected to receive this offer because you satisfied certain criteria for creditworthiness which we previously
established. The offered credit may not be extended if, after you respond to this offer, we determine that you do not meet the
criteria used to select you for this offer or any other applicable criteria bearing on creditworthiness, or if you do not provide
the required collateral. Terms and conditions apply. Income verification required and your total monthly debt-to-income ratio
(i.e. total monthly debt payments divided by your monthly gross income) cannot exceed 43%. Not all applicants will qualify
for the lowest rate.
2 APR=Annual Percentage Rate effective ((Month)) ((Day)), ((Year)), and may change based on market conditions and borrower
eligibility. Subject to credit approval. Offer available for purchase or refinance on ((Month)) ((Day)), ((Year)). Must be primary
residence. Property insurance required. The minimum approved loan amount is $XX,XXX.00. The maximum approved loan
amount is $XX,XXX.XX. Quoted X.XX% APR is a fixed-rate mortgage. Your interest rate will never be greater than XX.XX%
over the term of the loan. Payments do not include applicable taxes and insurance. Actual obligation will be greater. APR is
calculated based upon a purchase of $XXX,XXX.00 loan amount and an 80% Loan-to-Value (LTV) using typical YourFI Name
closing costs. Payment example would be $XXX.XX with an APR of X.XX%. Other conditions apply. Membership eligibility is
required.
3 Limited-time offer. YourFI Name will pay up to a maximum of $XXX.XX in closing costs for a purchase or refinance with no
cash out.
• Pre-selected
• Call-to-action
• Personalization
FCRA-compliant disclosures
FI MAILING ADDRESS
John Smith
((XFULLNAME2))
((XADDRESS1))
((XADDRESS2))
Locations
Branch Location1
Address
Phone Number
Branch Location2
Address
Phone Number
Branch Location3
Address
Phone Number
Home Sweet Home
existing home.
Act Now!
Dear John Smith,
.
of your mortgage.
monthly payment.
Sincerely,
Signatory Name
Signatory Name
Signatory Title
CALL: 800-000-0000
Plus, save up to$
3.25% APR
2
23

Requirements
  Equal Housing Lender logo
  Opt-out box (for pre-approved offers)
Disclosure guidelines from the Fair Credit Reporting Act (FCRA)
Note: Any pre-screened offer requires both the short opt-out notice on the
front of a piece and long opt-out notice on the back or front of a piece
  Opt-out box graphic requirements are:
Short notice
•  Front of the mail piece
•  Type must be distinct
•  At least 12-pt. font
•  Inside a border
Long notice
•  Back or front of the mail piece
•  Must begin with “Prescreen & Opt-Out Notice”
•  Typeface must be distinct
•  At least 12-pt. font
24
Source: FCRA (Fair Credit Reporting Act) Guidelines
http://www.occ.gov/news-issuances/bulletins/2005/bulletin-2005-7.html
Legal Requirements

o  Customer cross-sell
o  Hero Rate: Pre-Selected for
3.25% APR with 8-year term
o  USP: Credit Union “not for
profit” positioning to credibly
provide lowest rates available
o  Format: Letter package
o  Call-to-Action: Call
Dutch Point Credit Union®
Mortgage Refinance
25 Source: Harland Clarke and Dutch Point Credit Union
Dear ((Name)),
Are you spending too much on your mortgage? With our Fast Track
8-year Home Equity Loan, you can pay off your mortgage early and
save thousands of dollars. And it’s only available from Dutch Point
Credit Union.
Own your home free and clear — faster and for less.
Simply refinance your existing mortgage from another lender with
our Fast Track loan and get a shorter term and lower your costs. As
a not-for-profit financial institution, we can offer you the lowest rates
available. You won’t find better terms.
You’re pre-selected.
Just call today to accept this offer.
It’s easy to Fast Track your mortgage. Just call 800-842-1778 to speak
with a loan specialist. It’s that easy!
Contact us today so we can help you save money and own your
home sooner.
Sincerely,
Francis R.N. Proto
President and CEO
P.S. Don’t wait, call now to accept this offer.
Promotion only available for a limited time.
((Joe Sample))
((Address 1))
((Address 2))
((City, State Zip))
195 Silas Deane Highway, Wethersfield, CT 06109
YOU’VE BEEN
PRE-SELECTED1
Pay off your mortgage with a low
3.25%
APR*
8-YEAR TERM
FAST TRACK
YOUR MORTGAGE:
Rates as low as 3.25% APR
Borrow up to $
250,000
Save money and own
your home sooner
No mortgage
refinance hassle
May be tax-deductible**
Easy to apply
Quick to close
APPLY TODAY!
Call
800-842-1778
Visit
your local branch
(for branch locations,see reverse)
You can choose to stop receiving “prescreened” offers of credit from this and
other companies by calling toll-free 1-888-567-8688. See PRESCREEN & OPT-OUT NOTICE on
other side for more information about prescreened offers.
PRESORTED
FIRST-CLASS MAIL
U.S. POSTAGE
PAID
HARLAND CLARKE
Did Well: Well branded, attractive rate and
motivating “Fast Track: pay off your mortgage early
and save thousands” messaging; scannable features
in sidebar; clear call to action
Next Time: Consider waiving closing costs,
savings chart

o  Hero rate: 2.38%/2.93% APR
Adjustable-rate mortgage
o  Offer: PLUS earn a $250
Mortgage Cash Bonus
o  Urgency: “Historically low
rates won’t last forever”
o  Call to action: Call
New York Community Bank®
Mortgage Loan or Refinance
24 Source: Comperemedia
Did Well: Great urgency, attractive rate
and appealing, rich cash bonus
Next Time: A lot of hurdles to get $250
Bonus, but says it’s easy; no firm offer of credit

o  Prospect acquisition
o  Hero rate: 2.85%/3.13%
Adjustable-rate mortgage
o  Offer: Get a $100 Home Depot® gift
card on closing
o  Message: “Smart Rate Adjustable
Mortgage now available in your area”-
brands product to create interest;
insert educates, establishes
ThirdFederal as proven provider
o  Format: Letter package with insert
o  Call to action: Stop by branch or call
ThirdFederal Savings & Loan®
Mortgage Loan
Did Well: Leads with rate, gift card coupon
makes offer stand out, invitation code creates
perception of exclusivity, end date for urgency
Next Time: Use header over letter to call
out urgency, savings

o  Offer: $250 off closing costs
o  Home Affordable Refinance
Program (HARP)
o  Call to action: Call today
M&T Bank®
Mortgage Refinance
Did Well: Good use of urgency, helpful tone
to customer clearly outlining “Top Reasons to
Refinance Your Loan,” consistent branding and
tone is consultative
Next Time: Very general with no rate or
firm offer of credit, strong rate offer would make
it more competitive

o  Prospect acquisition
o  Hero rate: Low fixed 2.99% APR
o  Offer: PLUS get iPad® on closing
o  Message: Refinance, save and pay
off your mortgage and other debt
faster, build equity faster
o  Format: Self-mailer
o  Call to action: Stop by branch or call
The Bank of Greene County®
Mortgage Refinance
Did Well: Good hero rate, iPad offer is
eye-catching, great urgency with end date for
offer, lists branches near you
Next Time: Clarify and play off “save on
closing costs” to increase appeal and credibility

o  Hero rate: Low fixed 3.96% APR
o  Prequalified app
o  OFFER: Up to $500 cash back annually
with auto deduct from checking – for
the life of your loan! (branded Mortgage
Cash Back)
o  Key message: Lower your mortgage
payment and save year after year
o  No-closing-fee option, no origination
fees and no application fee
o  Reply: Call, visit, online
Chase®
Mortgage Refinance
Did Well: Positions loan as easier to get due to
relationship, example savings chart makes savings
tangible (calls out annual savings in chart and
sidebar), great urgency with end date and “rates
change daily”
Next Time: Call-to-action is to call branch, but
needs to include branch phone number

o  Customer Referral
o  Offer: $400 off closing costs on next
loan or refi when you refer a friend
o  Message: Now’s a good time to buy,
rates are still low and home prices are
good, help a friend save and get $ off
your next loan or refi
o  Format: Postcard
o  Call to action: Pass along referral card
HomeStreet Bank®
Mortgage Referral
Did Well: Comes from Mortgage Loan
Origination (MLO) and includes card to pass along,
simple process
Next Time: No specific rates mentioned, but
this does allow for postcard usage, personalization
to customer would be good in messaging

Mail
  QR code
(if makes sense to drive to app page)
Email
  Customer cross-sell
  Great channel for relationship-based
offers and more
  Piggyback onto regular e-newsletter
streams
In-branch
  Take-ones
  Posters
  Tent cards
  Banker sheets
Web
  Online banking pop-ups
  Drive to landing page
Channel integration creates synergies
30 Source: FCRA (Fair Credit Reporting Act) Guidelines
Beyond Mail
ATM
  Promotional messaging and offer coupons
Mobile
  Integrated promotional messaging to
customers
Social Media
  Challenging for many financial institutions
  Build awareness of your financial institution
as actively lending
  Positive exposure for good customer
experiences
  MLO discussions, blogs, first-time
home buyer tips
Integrated multichannel campaigns surround your customers with your mortgage message

Q&A
33
A video replay of this webcast will be
sent to you within the next week.
Press *1 on your phone
- or -
use the chat window and
send your question to
“All Panelists”
Kris Niblett, Creative Director
Stephen Nikitas, Senior Marketing Strategist
linkedin.com/company/Harland-Clarke
twitter.com/HarlandClarke
plus.google.com/+HarlandClarke
youtube.com/user/HarlandClarkeCorp
www.HarlandClarke.com

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