June2016 - Chase[ing] the Dream

TheMReport — News and strategies for the evolving mortgage marketplace.

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38 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G A NA LY T I C S S E C O N DA R Y M A R K E T ORIGINATION THE LATEST Most Consumers Report a Positive Homebuying Experience While just over a third of homebuyers reported having an "excellent" experience with their lenders, just under one third said the homebuying process was "very to extremely stressful." A lthough most consum- ers indicate that they had a positive home- buying experience despite a more time-consuming mortgage process, they also called attention to three things banks need to improve on. TD Bank's Mortgage Service Index, which polled more than 1,300 American homeowners who took out a home mortgage during the last 10 years, found that even with new loan and closing disclosures forms associated with the TILA-RESPA Integrated Disclosure (TRID) rule, homebuyers report positive mortgage experiences and are using new, creative ways to finance their home purchases. Although more than half of respondents rated their lender as "excellent" or "very good" in responsiveness, mortgage rate and terms, honesty and transparency, accessibility, and keeping them informed, they also noted areas of improvement: • Adding more information online • Training frontline staff • Offering home financing semi- nars or workshops According to the report, nearly all respondents said their mortgage loan officer was their most valuable resource during the home-buying process in 2015. Sixty-seven percent of millennials suggested banks could improve their mortgage process by educating them and adding more online information and resources. The report showed 62 percent of respondents spent close to $2,000 in unexpected costs during the mortgage process, while almost half of millennials incurred up to $5,000 in unexpected costs. "Our data demonstrates that home buying sentiment is improving, but lenders still need to adopt a more omnichannel approach to providing financial guidance and expertise," said Kevin Gillen, SVP of Mortgage at TD Bank. "Consumers should find a lender who can educate and support them on all aspects of the mortgage process. By understanding the process they will enjoy a more positive home- buying experience." Although homebuying sentiment is on the rise, stress factors remain an issue, according to TD Bank. Of those surveyed, 71 percent of homeowners rated their most recent buying experience as "very good" or "excellent," up almost 10 percent in the past two years, despite a more time-consuming mortgage process. The most positive aspects of the mortgage process for respondents was getting approved for a mortgage, finding a good Realtor, and finding the right lender. Housing market improvements over the next six months are expected by 42 percent of Americans, while 56 percent felt it's a "good" time to buy a home. The survey found that one in five consumers were "extremely likely" to purchase a new home in the next year, including 38 percent of millennials. TD Bank reported 34 percent of Americans had an "excellent" experience with their lender, up from 28 percent in 2015. However, 32 percent of respondents reported their home purchase was "very to extremely stressful." "With today's increasing home prices and the anticipated rise in interest rates, choosing a first- time mortgage or affordability program can be a great way for consumers to enter the housing market," Gillen explained. "TD Bank continues to make financing more manageable by offering flexible loan options to buyers at all income levels. Buyers embarking on homeownership should understand that finding a lender that provides ongoing communication and diverse loan options is critical to a smooth, low-stress home purchase." "With today's increasing home prices and the anticipated rise in interest rates, choosing a first-time mortgage or affordability program can be a great way for consumers to enter the housing market." —Kevin Gillen, SVP of Mortgage, TD Bank 3MReport.indd

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