Mortgagebot's Benchmark study tracks and analyzes online lending trendsMortgagePress.comMortgage lending online
Mequon, Wis.-based Mortgagebot LLC is pleased to announce that
it has completed and released its Benchmarks 2007 study. Benchmarks
2007 is significant because it is based on a comprehensive survey
and analysis of the online lending practices and procedures that
have been implemented at more than 3,600 mortgage-lending Web
sites—Web sites that Mortgagebot maintains for its more than
700 clients nationwide.
Benchmarks 2007 was developed as a part of Mortgagebot's ongoing
commitment to helping its clients improve their online lending
success. The research was conducted, analyzed, interpreted and
published at no charge to Mortgagebot clients.
"We're delighted to provide this unique and original research to
our clients," said Mortgagebot President and CEO Scott Happ. "Our
Benchmarks study analyzes the overall online lending practices of
all Mortgagebot clients, and the results help them get a sense of
how effectively they're responding to industry trends—and how
well their businesses compare with their peers."
"Our clients run the gamut in size," noted Happ, "so our study
data represents the real-world activity of a broad spectrum of
lenders. Half of our clients have less than $500 million in assets,
and half have more. We're also very proud to serve 25 of America's
top 100 banks and thrifts, and 40 of the top 100 credit
unions."
2007 study tracks online borrower activity, lender
business practices
Benchmarks 2007 is the second such study to be done by Mortgagebot,
the first one having been published to Mortgagebot clients in 2005.
The 2007 study is divided into several sections, which present
detailed data analysis on such topics as:
• Loan product and decisioning statistics;
• Online borrower behavior and Web site usage;
• Lender Web site configuration and marketing; and
• Lending channels and loan volume.
Trends confirmed, myths debunked
According to Happ, Benchmarks 2007 presents useful insights into
the realm of consumer-direct, Web-based mortgage
lending—insights that can help clients sharpen the focus and
direction of their lending businesses. The study reveals that:
• Young homeowners are turning to the Web for mortgages.
More than half of all online mortgage applications are submitted by
borrowers who are between 19 and 39 years of age.
• The online channel is a force to be reckoned with.
One-fourth of the lenders studied now originate more than half of
their loan volume via the online channel.
• Home-equity loans continue to be popular. The number of
lenders implementing home-equity functionality in the
direct-to-consumer channel has more than quadrupled since
2004.
• Web-savvy borrowers apply for mortgages during peak
business hours. Most borrowers visit a mortgage-lending Web site
between the hours of 10:00 a.m. and 3:00 p.m., which indicates that
they are more likely to apply for a loan while on a break or during
a lunch hour than while at home in the evening.
• Electronic disclosures are widespread. The number of
lenders implementing online, Real Estate Settlement Procedures
Act-related disclosure functionality has nearly tripled since
2004.
• Loan officers are trading paper forms for online tools.
Online lending solutions are moving strongly into the hands of loan
officers—the implementation of loan-officer-specific Web
sites has more than doubled since 2004.
"Benchmarks 2007 also disproves some common online-lending
myths," noted Happ. "For example, the median household income and
credit score of the average online borrower is significantly higher
than some reports would have us believe. Our nationwide data
indicates that the median annual income is more than
$85,000—and the average credit score is about 709.
"We've also learned that the quality of online borrowers is much
higher than some industry pundits' claim," Happ said. "Online loan
applications taken by our clients have a more than 70 percent
approval rate. And the median loan amount was $145,000 against a
median purchase price of $210,000—which equates to a
loan-to-value ratio of 69 percent."
For more information, visit www.mortgagebot.com.
