NEW
YORK, Aug. 8, 2024 /PRNewswire/ -- A new report
on the lending industry 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. With an impending rate cut promising to
drive new business, lenders would do well to understand the factors
that matter most to potential customers during the home-buying
process.
"Buying a home is typically the biggest purchase most people
will make in their lifetime," says 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."
To conduct the research for the Mortgage Origination
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. The report found significant gaps in the experience of
first-time buyers compared to repeated buyers. First-time buyers
need more support throughout origination, relying on lenders for
information about the unfamiliar process. 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. But experienced buyers still benefit from
digital self-service tools like calculators to help them stay
informed throughout the process.
The research also found that 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. Lenders can support home buyers with consistent
experiences across mobile and desktop to create a streamlined,
burden-free experience. The report takes an in-depth look at the
digital lending platforms from eight firms.
"Communication is another key area where lenders have room to
improve," says 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."
Available to CI Lending Monitor subscribers, the Mortgage
Origination Study includes the follow lenders:
- Ability Ambeck Mortgage
- Ally
- Chase
- Navy Federal Credit Union
- Rocket Mortgage
- SoFi
- Supreme Lending
- UMC Capital
About Corporate Insight
Corporate Insight (CI) delivers competitive intelligence, user
experience research and consulting services to the nation's leading
financial services, insurance and healthcare institutions. As the
recognized industry leader in customer experience research for over
30 years, we have been the trusted partner to corporations seeking
to improve their digital capabilities and user experience. Our
best-in-class research platform and unique approach of analyzing
the actual customer experience helps corporations advance their
competitive position in the marketplace.
For media inquiries or to schedule an interview with an analyst,
contact:
Patrick Flood
646-876-7535
pflood@corporateinsight.com
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SOURCE Corporate Insight