MEQUON, Wis.-A new study suggests that the lenders most likely to succeed in getting mortgages will offer competitive online rates, optimized websites and integrated point-of-sale (POS).
The study, "Benchmarks 2011 Report," from Mortgagebot, is based on consumer-direct online mortgage applications submitted in 2010 to mortgage lenders, and found that lenders who meet those criteria saw eight times more mortgage app volume than other lenders.
"The study's breadth of information gives banks and credit unions a vital tool for success in the consumer-direct, Web-based mortgage channel," said Rick Allen, Mortgagebot SVP-client services, in a released statement.
The study found:
• 40% of lenders reported taking more than 25% of their loan apps online.
• 72% of online borrowers who were eligible to complete their loan application online did so.
• 54% of visits to lenders' sites were to check rates. Mortgagebot said this means those lenders must "present accurate, risk-based pricing and detailed fee quotes to meet borrower expectations."
• More than one in six visitors spend more than 16 minutes on a lender's website, excluding visits that were less than a minute. Shoppers who do not have sufficient time to complete a transaction tend to come back, with the study finding 48% of applications were submitted over multiple sessions, with 90% of the returning users submitting their application within two weeks of starting it.
• Online apps in 2010 in the report had a median credit score of 757, a median household income of $90,000, a median borrower age of 42, and a median loan-to-value ratio of 70%.
• More than one-third of consumers applied during non-traditional business hours.
• The simpler the better. The study said its panel of tester found it took 24% more time and 24% more clicks to reach the application entry page at less successful sites.
