Consumers contemplate Walmart mortgages
Displeasure with the mortgage industry has one-third of consumers saying, if offered, they would consider getting a mortgage from Walmart.
Wed, Dec 05 2012 at 8:45 AM
Eighty percent of homeowners said that working with an institution other than a bank to secure a mortgage is something they would consider. (Photo: Shutterstock)
Groceries, housewares and electronics aren't the only things some shoppers would like to pick up at their local Walmart, new research finds.
A study by Carlisle & Gallagher Consulting Group discovered that displeasure with the current mortgage industry has one-third of consumers saying, if offered, they would consider getting their next mortgage from the retail chain Walmart. Nearly half of those surveyed would think about taking a mortgage from the electronic payment service PayPal.
Overall, 80 percent of homeowners said that working with an institution other than a bank to secure a mortgage is something they would consider.
Painfully slow execution tops the numerous complaints consumers have with the current mortgage process. Other frustrations that are driving consumers to alternative home loan providers are communication problems, the inability to track the status of a mortgage application and the untrustworthy advice they often receive.
"Consumer attitude is driven by three things: price, service and trust," said Doug Hautop, senior manager and lending practice lead for Carlisle & Gallagher Consulting Group. "Institutions looking to gain market share must target customer values instead of traditional asset segmentation."
The study suggests that in order to gain new customers and increase profits, current mortgage lenders need to not only improve the overall customer experience during the opening of mortgage account, but they also must increase the use of technology to meet consumer demands.
The research, which will be released in full next month, was based on surveys of more than 600 U.S. consumers.
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