The Lending Monitor: Mortgage Origination Study from CI 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. Watch the preview video to see some of the key takeaways from this groundbreaking report, read the highlights in this post, and download a preview version of the report at the bottom of the page.
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. Buying a home is typically the biggest purchase most people will make in their lifetime. The report finds that interest rates are consistently the most important factor, though trust and firm reputation are also top of mind. Consumers are willing to take their time in researching lenders to ensure they make the right choice for themselves and their families.
First-time buyers and experienced buyers need different resources
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. Additionally, first-time buyers are often less financially literate overall and benefit from more 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.
Buyers rely on mobile and desktop platforms for different purposes
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.
Customers want more support during key stages
Communication is another key area where lenders have room to improve. 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.
