Carlisle & Gallagher Consulting Group (CG) has released findings from its U.S. consumer mortgage study. CG surveyed consumers to learn about their views toward homeownership, how recent changes in the mortgage industry impacted their application experience, what factors are most important in the mortgage application process, and if consumers would be willing to consider an alternate mortgage provider.
According to the 618 U.S. consumers who participated in CG’s online study in September 2012:
►80 percent of U.S. consumers would consider a mortgage from a non-bank
►One in three consumers would consider a mortgage from Walmart
►48 percent would consider a mortgage from PayPal
Although, consumer satisfaction with primary banks ranked high (81 percent) the study reveals continued frustrations with current mortgage processes that could drive consumers to alternative home loan providers:
►High interest rates, high payments, and taxes and escrow are the top three most frustrating issues regarding consumers’ current mortgages
►56 percent of consumers blame slow execution as one of the most painful aspects of the mortgage process
►32 percent said difficult to communicate with
►31 percent said unable to track the status of their mortgage application
►26 percent said untrustworthy advice
“Consumer attitude is driven by three things, price, service 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.”
