Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

12/3/2012 (1 year ago)

Catholic Online (www.catholic.org)

U.S. borrowers focus on price, customer service and trust in their provider when selecting a mortgage

A survey has found that many Americans - as high as 33 percent, or one in three, would welcome purchasing a mortgage from retail giant Wal-Mart. If that sounds disconcerting, considering the statistic that these same Americans would be amenable to buying a mortgage form Internet payment provider PayPal. This comes as startling news to banks and lenders as PayPal and Wal-Mart don't offer this service.

Two-thirds of respondents in a recent poll said the high cost of getting a loan was the most painful aspect of the mortgage application process, followed by slow execution (56 percent) and poor communication with the lender (32 percent).

Two-thirds of respondents in a recent poll said the high cost of getting a loan was the most painful aspect of the mortgage application process, followed by slow execution (56 percent) and poor communication with the lender (32 percent).

Article Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

12/3/2012 (1 year ago)

Published in Business & Economics

Keywords: Wal-Mart, PayPal, mortgages, traditional banks, Bank of America


LOS ANGELES, CA (Catholic Online) - Carlisle & Gallagher Consulting Group, which conducted the survey says that more consumers are willing to try alternative lenders as borrowers focus on price, customer service and trust. 

"There is a real threat from new entrants," Doug Hautop, lending practice lead at the group says.

The study's results were based on online responses from 618 U.S. consumers in September.

Quicken Loans and Nationstar Mortgage Holdings Inc., both non-bank mortgage companies have been gaining market share as some large banks such as Bank of America Corp. that burned them during the financial crisis.

Carlisle & Gallagher, based in Charlotte, North Carolina, provides consulting services to five of the top eight U.S. mortgage originators, Hautop said.

What was the reaction from Wal-Mart about these recent findings? A Wal-Mart Stores Inc spokeswoman declined to comment on the survey. The retailer provides small business loans at its Sam's Club stores, but doesn't offer mortgages.

PayPal Inc., a subsidiary of online auction site eBay Inc., says it offers credit lines for customer purchases, but hasn't announced any plans to move into the mortgage business.

Retailers have entered the mortgage business before. In late 2011, warehouse retailer Costco Wholesale Corp began offering home loans online through select lenders. The company doesn't disclose loan volume, but the service has gone well, said Jay Smith, Costco's director of financial services.

"We have tried to make it a service where members see significant value on rates and fees," Smith said.

There was a bright spot for traditional banks. While the Carlisle & Gallagher survey found that 80 percent of U.S. consumers would consider a mortgage from a non-bank, 70 percent of respondents said they would prefer to have their mortgage with one of their main banks -- although only 39 percent currently do so.

Two-thirds of respondents said the high cost of getting a loan was the most painful aspect of the mortgage application process, followed by slow execution (56 percent) and poor communication with the lender (32 percent).

"Banks have a captive audience, and have folks who are willing and wanting to do business with them," Hautop said. "It means it's time to go back to the basics for our banks."

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for April 2014
Ecology and Justice:
That governments may foster the protection of creation and the just distribution of natural resources.
Hope for the Sick: That the Risen Lord may fill with hope the hearts of those who are being tested by pain and sickness.



Comments


More Business & Economics

Kill them with kindness: Apple launches 'charm offensive' Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

Sometimes, it's best to kill them with kindness. Investors with Apple are growing disappointed with slower than usual growth. To address, the tech giant is planning a "charm offensive" to garner enthusiasm. Part of that strategy will be stock splits and huge ... continue reading


Despite naysayers -- America is successfully addressing debt Watch

Image of What's turning the tide is the fact that the U.S. energy revolution, with oil booms reported across the Dakotas, Wyoming, Nebraska, Washington, Oregon, Utah and Texas.

By Catholic Online (NEWS CONSORTIUM)

"Claims that President Barack Obama is bankrupting America with a lurch towards hard-Left statism are for tabloid consumption only," Columnist Ambrose Evans-Pritchard with The Telegraph writes. In a world littered with bad economic news, the proof is becoming ... continue reading


COMCAST DOMINATING? Merger may dominate market for local political advertisers Watch

Image of If Comcast's proposed $45 billion merger with Time Warner Cable is approved, according to industry sources, the Democrat Party-leaning cable television and Internet service could very well dominate the market for local political advertising.

By Catholic Online (NEWS CONSORTIUM)

If Comcast's proposed $45 billion merger with Time Warner Cable is approved, according to industry sources, the Democrat Party-leaning cable television and Internet service could very well dominate the market for local political advertising. The merger's ... continue reading


Is the 'Mark of the Beast' the future of money? Watch

Image of Theoretically, a unique identifier is attached to your digital wallet, could transmits payment for the groceries directly to the store.

By Catholic Online (NEWS CONSORTIUM)

Some futuristic thinkers say that in the next 20 years or so, when people go to the market, they will pick up the items they need and leave - without the benefit of paying a cashier. Sensors will identify a consumer by a mark, their way of walking or facial ... continue reading


Credit card wars: Wal-Mart sues Visa over transaction 'conspiracy' Watch

Image of Wal-Mart objects to the requirement that retailers who want to accept any payments via Visa honor all issuers' Visa-branded cards.

By Catholic Online (NEWS CONSORTIUM)

In an ongoing war over credit cards in the modern retail environment, Wal-Mart Stores Inc. is suing Visa Inc. for allegedly conspiring with banks to fix transaction fees. It's just the latest in a long, ongoing legal fight between retailers and card issuers. ... continue reading


In spite of tax revenue all-time highs - government still running in the deficit Watch

Image of Congress passed and President Obama signed

By Catholic Online (NEWS CONSORTIUM)

According to the Monthly Treasury Statement for February, inflation-adjusted federal tax revenues hit a record $1,104,947,000,000 in the first five months of fiscal 2014. It would stand to reason that the government would have partially dug itself out of its ... continue reading


'Regulated' Bitcoin exchanges planned in New York Watch

Image of Singapore has imposed a tax on Bitcoin trading and using it to pay for services, after classifying it as goods, rather than a currency.

By Catholic Online (NEWS CONSORTIUM)

In a sign that the digital form of exchange in popularity - and by extension, legitimacy, New York's financial regulator has called on firms to submit proposals to set up "regulated" exchanges for currency such as the Bitcoin. LOS ANGELES, CA (Catholic Online) ... continue reading


One, fell swoop: Italy's biggest bank to cut 8,500 jobs Watch

Image of The company is to create an internal

By Catholic Online (NEWS CONSORTIUM)

"I believe the group has turned the page," Italy's largest bank, UniCredit's chief executive, Federico Ghizzoni said. "We could have staggered the losses over several years. We decided to take them all in one year." It wasn't good news for many - Unicredit has ... continue reading


$30 trillion increase from $70 trillion between mid-2007 and mid-2013 sends global debt over $100 trillion Watch

Image of The bank is owned by 60 central banks and hosts the Basel Committee on Banking Supervision, a group of regulators and central bankers that sets global capital standards.

By Catholic Online (NEWS CONSORTIUM)

Everyone at some point seems to 'rob Peter to pay Paul' - especially international governments. During the European debt crisis, many nations borrowed money to keep their governments solvent. As a result, global debt increased by $30 trillion from the original ... continue reading


Wowza! Restaurant starts charging diners for Obamacare Watch

Image of Obamacare sounds nice, but somebody has to pay. At least Gator's Dockside is up front about it.

By Catholic Online (NEWS CONSORTIUM)

Going out to dinner? You'd better be prepared to pay a little bit extra thanks to Obamacare. A chain of Florida restaurants is tacking a surcharge onto diner's bills to help keep expenses at bay and workers on the payroll. LOS ANGELES, CA (Catholic Online) - A small ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, First Peter 5:5-14
5 In the same way, younger people, be subject to the ... Read More

Psalm, Psalms 89:2-3, 6-7, 16-17
2 for you have said: love is built to last for ever, ... Read More

Gospel, Mark 16:15-20
15 And he said to them, 'Go out to the whole world; ... Read More

Saint of the Day

Saint of the Day for April 25th, 2014 Image

St. Mark
April 25: The second Gospel was written by St. Mark, who, in the New ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter