Getting a Reverse Mortgage at Walmart? Borrowers Say OK

Consumers are ready and willing to work with non-banks for their mortgage needs, according to a study from Carlisle & Gallagher Consulting Group (CG). A management and technology consulting firm, CG released findings this week that revealed most consumers would be willing to consult non-bank entities like Walmart and PayPal for their next mortgage loan.

Of the 618 participants included in the survey, CG notes 80% of U.S. consumers would consider a mortgage from a non-bank. Additionally, 1 in 3 consumers would consider a mortgage from Walmart, while 48% would consider a mortgage from PayPal.

The findings are based on consumers’ experiences in the mortgage application process. CG surveyed consumers about their views toward home ownership, including how recent changes within the mortgage industry impacted their application experience, what factors are most important in the application process, and if consumers would be willing to choose an alternative mortgage provider given their experiences.

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Current mortgage processes were listed as continued frustrations by participants, leading many to opt for non-bank consideration. High interest rates, high payments and taxes, and escrow were the top three most frustrating issues CG listed among consumers.

Slow execution ranked highest among consumer complaints, accounting for 56% of participants. Communication difficulties clocked in next at 32%. Inability to track mortgage application statuses represented 31% of complaints, and 26% of consumers cited untrustworthy advice for staying away from banks.

“Consumer attitude is driven by three things, price, service and trust,” said Doug Hautop, senior manager and lending practice lead for CG. “Institutions looking to gain market share must target customer values instead of traditional asset segmentation.”

Written by Jason Oliva

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  • These findings are not that of a profession but rather of a commodity which can be just as easily provided by a clerk as anyone else.  If lenders begin seeing their market shares being siphoned off by retail sales locations, it would seem call centers, application mailings, and advice by phone probably were not the wisest course of action.

    • Lance,

      Has anyone the size of Walmart ever tried it?  

      Since its massive expansion, Walmart has successfully brought in many different kinds of businesses into its stores where others have failed trying to do exactly the same thing.  Even as a broker, if all it did was 2 HECM originations per location where offered, their profits per invested dollar would be enticing but Walmart would probably do much better than that.

      With current HECM uncertainties, the possible entry of Walmart into our space is most likely years off.   

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