The home equity market is expanding as home values rise and the mortgage market is moving to purchase and first time homebuyers. Many new players have entered the market over the past several years and redefined the online application process and customer experience. These companies possess platforms that are nimble to drive personalization and conduct frequent testing (A/B, multivariate) to dramatically increase conversion rates and provide greater efficiencies in digital marketing.
For lenders to capitalize on growing demand and compete with their smaller, more nimble counterparts, it will require playing catch-up in key technology areas. To remain competitive, lenders must build online customer experiences that match how consumers are shopping for credit today.
By continually assessing the latest mobile and online technologies, lenders are able to make the loan processes as simple and transparent as possible. Mobile has redefined what and how information is collected and is playing a bigger part in improving the customer experience through the online loan application process.
Highlights from the report include:
- According to the Mortgage Bankers Association, purchase originations are projected to top $800 billion in both 2015 and 2016 ... an increase of $71 billion and $94 billion.
- HELOC originations increased 21% year over year, from $25.6 billion in Q1 2014 to $31 billion in Q1 2015.
- Only 38% of the 52% of mortgage borrowers (with income between $50k and $100k) that wanted to obtain a mortgage quote online were successful.