TheMReport — News and strategies for the evolving mortgage marketplace.
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local edition ANALYTICS The credit union is celebrating a successful end to 2012, reporting strong year-over-year improvements in loan volume. they would rank their level of satisfaction with their bank at "high." However, there are a few major issues that could drive away market share: High interest rates, high payments, and taxes and escrow were cited as the most frustrating issues regarding consumers' current mortgages. Meanwhile, many respondents expressed aggravation with the application process. Fifty-six District of Columbia // percent of consumers say slow execution is one of the most painful aspects of the mortgage process. Communication is also a big problem. Thirty-two percent of respondents say their lender is difficult to communicate with, while 31 percent say they have been unable to track the status of their mortgage application. Perhaps most disturbing is the lack of trust consumers have for their lenders. Twenty-six percent said their lender offers "untrustworthy advice." "Consumer attitude is driven by three things: price, service, The M Report | 65 se c on da r y m a r k e t ly released study from Carlisle & Gallagher Consulting Group (CG) finds that a vast majority of consumers would consider looking to non-banks for their next mortgage. The group conducted a survey in September of 618 consumers in the United States. According to the findings, 80 percent of respondents would consider purchasing a mortgage from a panded its offerings into mortgage services. While banks may not feel pressure at the moment from those particular companies, they have no doubt noticed the rise of nonbanking entities in the mortgage industry. According to data from Mortgage Daily, Quicken Loans was the fifth-most active originator in the third quarter last year and was one of a handful of banks whose market share actually expanded. The interest in non-banks is somewhat surprising, given that 81 percent of consumers said After experiencing a one-month lull, mortgage insurance activity picked up in October. According to data from Mortgage Insurance Companies of America (MICA), member companies wrote 42,833 insurance policies that month. In dollar volume, members reported $11.5 billion in insurance written throughout October. October's volume was a significant step up from September, which saw 37,554 policies totaling $10.1 billion. The previous year, member companies reported 26,293 policies written for $5.1 billion. As of the end of the month, primary insurance in force totaled more than $400 billion, marking the first time in 2012 that insurance in force made it above that line. October also saw a rise in the number of mortgage insurance applications. MICA reported 46,045 applications received throughout the month, with member companies reporting 40,353 applications in September and 29,508 in October 2011. Defaults fell as cures picked back up, with their numbers reaching 24,729 and 20,068, respectively. The cure/default ratio hit 81.1 percent, up from September's 75.7 percent. Companies represented in October's report include Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, and Radian Guaranty Inc. Data prior to January 2012 also included reports from Republic Mortgage Insurance Co. a na ly t ic s Consumers Confident in NonBank Loans North Carolina // A recent- MICA Reports Renewed Strength Data from the organization showed that mortgage insurance volume was on the rise month-over-month. California // Kinecta Federal Credit Union's mortgage volume reached more than $3 billion at the end of October, exceeding its 2011 volume with a full quarter still remaining, the Californiabased company reported. The lender attributed its growth to "dramatic shifts among many of the major lenders, combined with Kinecta's own strategy for continuing growth." "The mortgage market is showing marked improvement and with that we have been able to offer significant benefits to our members," said Joseph Whitaker, EVP and COO of Kinecta. "Kinecta offers competitive low rates and a broad product menu, and we will continue to do so as we move forward, continually growing as a national mortgage lender." Findings from Carlisle & Gallagher indicated that confusion regarding third-party lenders isn't hindering borrower interest in non-bank mortgages. and trust," said Doug Hautop, senior manager and lending practice lead for CG. "Institutions looking to gain market share must target customer values instead of traditional asset segmentation." s e r v ic i ng non-bank institution. One-third of consumers said they would consider a mortgage from retail giant Wal-Mart, while 48 percent would consider a mortgage from online payment website PayPal. Neither Wal-Mart nor PayPal offers mortgage products, but there are some big players breaking into the home lending space. According to a report from the New York Times, Costco has ex- Or ig i nat ion Kinecta Federal Credit Union Reaches Record Loan Volume