A new report on the mortgage from Corporate Insight (CI) examines the loan origination experience from the perspective of actual borrowers, identifying new best practices, competitive gaps, and ways lenders can better serve consumers. The “Lending Monitor: Mortgage Origination Study” examines the loan origination experience using a consumer survey, in-depth interviews with active home buyers, and an examination of firm communications to identify the factors that influence lender selection and the overall borrower experience today.
“Buying a home is typically the biggest purchase most people will make in their lifetime,” said Julianna Sansevero, Senior Analyst at CI. “Interest rates are consistently the most important factor, though trust and firm reputation are also top of mind. People are willing to take their time in researching lenders to ensure they make the right choice for themselves and their families.”
Education Is Key
In conducting the research for the study, CI examined digital lending platforms, commissioned a survey of prospective home buyers, and conducted in-depth interviews with several home buyers at different stages of the lending process.
Major findings of the report included:
- Significant gaps were found in the experience of first-time buyers compared to repeated buyers.
- First-time buyers require more support throughout the origination process, relying on lenders for information.
- First-time buyers are often less financially literate overall and benefit from additional resources like educational content and calculators.
- Repeat buyers, meanwhile, place a higher value on speed and efficiency, as they have been through the process before and thus need fewer resources.
- Experienced buyers still benefit from digital self-service tools like calculators to help them stay informed throughout the process.
- Potential home buyers rely on mobile and desktop platforms for different parts of the customer journey. Buyers rely on mobile platforms early in the process, when comparing lenders, and often turn to online forums to learn about mortgages and lenders. Users prefer desktop experiences once they begin applying, with first-time buyers placing a particular value on document upload.
“Communication is another key area where lenders have room to improve,” said Olivia Jack, Research Manager at CI. “Our survey found that while overall satisfaction with lender communication is high, home buyers want more support during the prequalification and approval stage. Lenders can refine their communication strategy to offer more proactive outreach during these early stages of the lending process to reassure customers without also spamming them with cross-selling. Lenders must remember that buying a home is a stressful process, and a little support can go a long way.”
Click here for more information on CI’s “Lending Monitor: Mortgage Origination Study.”
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