Attention Walmart Shoppers: Mortgages, Aisle 3

by devteam December 4th, 2012 | Share

Results from a recent on-line study indicate that not allrnconsumers are wedded to traditional lenders when it comes to their mortgagernneeds.  Eighty percent of those surveyed,rnin fact, said they would consider obtaining a mortgage from a non-bank. </p

Carlislern& GallagherrnConsulting Group (CG),rna management and technology consulting firm serving the financial services industryrnsurveyedrnconsumers in September to learn about their views toward home ownership, how recent changes inrnthe mortgagernindustry impacted their applicationrnexperience, what factors are mostrnimportant in the mortgagernapplicationrnprocess,rnand if consumers would bernwilling to consider an alternate mortgage provider.</p

According to thern618 consumers who participated in the study, almost half (48 percent) wouldrnconsider obtaining a mortgage from PayPal and one in three said they wouldrnconsider a mortgage from Walmart.</p

Satisfaction with primary banks was arnrespectable 81 percent but study participants expressed frustration with somerncurrent mortgage practices and indicted that these could drive them to considerrnalternative providers.  The mostrnfrequently referenced issues were high interest rates, high payments, andrndealing with taxes and escrow.  Slowrnexecution was another problem mentioned by 56 percent of respondents while 32rnpercent cited the difficulty of communicating with their lender and 31 percentrnsaid they were unable to track the status of their loan application.  Twenty-six percent said they had receivedrnuntrustworthy advice from a traditional lender. </p

“Consumer attitude is driven by three things, price, service and trust,” said Doug Hautop, SeniorrnManager and Lending Practice lead for CG. “Institutions looking to gain market share must target customer values instead of traditionalrnassetrnsegmentation.”

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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