U.S. Mortgage Lending: Strategies to Gain Share in The New Normal - A CG study finds banks are missing an opportunity to increase their mortgage ...
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U.S. Mortgage Lending: Strategies to Gain Share in The New Normal A CG study finds banks are missing an opportunity to increase their mortgage business by 79% with their current customers INSPIRED TO HELP YOU SUCCEED
Table of Contents Introduction.......................................................................................................................................................................... 3 The Mortgage Market Outlook ........................................................................................................................................ 4 Understanding How Consumers Think About the Mortgage Application Process................................................. 5 Challenges and Demands in The New Normal.......................................................................................................... …8 Why Primary Banks Are Not Capturing Market Share................................................................................................. 9 Let the Voice of the Customer Be Your Guide............................................................................................................. 10 Four Key Strategies to Gain Share in The New Normal ............................................................................................ 13 Summary.............................................................................................................................................................................14 Research Methodology and Demographics ................................................................................................................ 15 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.
Introduction
What is The New Normal?
“The New Normal,” is a term that William H. Gross
coined in 2009 to define the economic landscape After four solid years of scrutiny and heavy gov-
for years, or decades, to come. Gross told Forbes
ernance by external third parties, the new state of
Magazine that our future will likely include a lowered
the lending industry is about continuing organic
living standard, high unemployment, stagnant
corporate profits, heavy government intervention in customer growth while managing an increasingly
the economy, and disappointing equity returns. complex set of credit and compliance risks.
“When we apply this definition of The New Normal
to mortgage and consumer lenders, a group that is ”But at the end of the day, acquiring new customers,
consumed with unprecedented challenges since the providing good customer service, and retaining those
foreclosure and loan modification crisis, we see a customers is still the most important thing lenders do
fundamental change taking place right now,” says Tom every day,“ CEB TowerGroup senior research director
Mataconis, vice president of consulting and practice Craig Focardi.
services, Carlisle & Gallagher Consulting Group (CG).
The question is: Are lenders too busy recovering
“There is a power shift from banks to customers, who
from being battered in the U.S. housing bust and
are demanding choices and more transparency into the
subsequent financial crisis to retain and deepen
mortgage application process. This shift makes it nearly
existing customer relationships?
impossible for lenders to sustain differentiation based
solely on price or product. Trust and customer service This factoid may provide the answer: People are
are the key differentiators that will allow banks to gain so frustrated with their banks that they would consider
market share in The New Normal.” going to Walmart (NYSE: WMT) for a mortgage if
they could. The majority of these customers do not
In CG’s work with 5 of the top 8 lenders in the U.S.,
have their mortgage with their primary bank. Banks
there has been an urgent need to help them address
are missing an opportunity to increase their mortgage
critical industry mandates and build new capabilities
business by 79% with their current customers. These
to achieve operational excellence. What has not been
are three key findings of the “U.S. Mortgage Lending:
addressed is how these big U.S. banks can leverage
Strategies to Gain Share in The New Normal” study,
their investment in regulatory responses to tackle
conducted by Carlisle & Gallagher Consulting Group
customer dissatisfaction and gain market share in
(CG, www.carlisleandgallagher.com), a management
The New Normal.
and technology consulting firm serving the financial
The New Normal brings implications for lender services industry.
strategies and technology investment, how you run
CG surveyed 618 U.S. consumers online in September
a business, and what you offer your customers.
2012 to gain better insight into the voice of the
These challenges include:
customer and provide strategic direction to its clients.
• Scattered intellectual capital inside lending Our survey sought to answer:
institutions due to competing priorities
• What is the current view toward home ownership?
• High purchase and refinance demand driven • How have recent changes in the mortgage industry
by record low rates and government assistance impacted the application experience?
programs that have led to elongated cycle times and
• What factors are most important in the
customer dissatisfaction
mortgage process?
• Increased regulatory compliance, designed to • Would customers be willing to pay more for a
protect consumers and stabilize the financial mortgage?
system, is further complicating lending business and • Would consumers be willing to consider an
technology operations alternate mortgage provider?
• What do primary banks need to do to add
market share?
3 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.
The Mortgage Market Outlook
Study Results at a Glance
CG’s study shows that homeownership confidence
is high — with 90% of respondents expecting their • Half of U.S. homeowners expect their home
homes to maintain value or grow significantly over to grow and deliver significant value
time (see Figure 1), and 1 in 5 consumers expecting
to purchase a home in the next 3 years.
• One-third of consumers are willing to pay
more for a mortgage if it comes with superior
Validating CG’s findings, the Fannie Mae National customer service
Housing Survey of October 2012 shows similar
numbers, with 72% of respondents saying it is a • Primary banks are missing an opportunity to
good time to buy a home. Additionally, the Fannie increase their mortgage business by 79%
Mae “Own-Rent Analysis” reported that the 2011 with their captive customers
National Housing Survey shows that homeownership
• 1 in 3 consumers would consider a mortgage
still appeals to the majority of Americans, with 85%
from Walmart
of respondents saying owning makes more sense
than renting financially over the long term and 64% • 80% of consumers would consider
saying that, if they were going to move, they would a non-bank for their next mortgage
buy a home.
According to MBA Mortgage Finance, mortgage
originations are forecasted to contract in 2013.
Refinance volume will decrease from 68% of
total originations to just 40%. Purchase volume
is forecasted to increase, making up 60% of total
originations. When we compare CG’s study data with
MBA Mortgage Finance volume data it is clear that
the pipeline is in the process of shifting away from
refinancing of existing homes toward the purchase
of new homes.
Home Ownership Confidence is High
Expected Financial Return on Home
Figure 1
Q12: Which of the following best describes your expected financial return on your home?
4 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.
Understanding How Consumers Think About percentage rate (APR), and maintaining a variety of
the Mortgage Application Process product offerings.
Clearly, buying a home is still a pillar of the American The CG study also found that there is a distinct group
dream. But how do consumers approach the of customers who value service and relationships,
mortgage application process? And how do they and are willing to pay more for it. Thirty-four percent
decide who to work with? of consumers (referred to as the “Pay More” group)
are willing to hand over more money for a mortgage
CG’s survey shows that cost, trust in the financial
if it comes with superior customer service. Fifty-two
institution, and quality customer service are the
percent of these respondents are willing to pay a
top three most important factors in the mortgage
premium to complete the mortgage process more
application process (see Figure 2). In fact, cost
easily. And, 39% of Pay More respondents are willing
remains king for new mortgages and refinancing with
to pony up to use their primary bank. See Figure 3.
84% of respondents rating cost as the number one
most important factor in the mortgage process. Convenience, access, advisory, trust, speed, and
predictability come into play with many applicants;
A Forrester Research report, “What Drives Retention
however with the Pay More group these elements are
and Sales in U.S. Banking,” found similar factors that
more prevalent. This group tends to value customer
drive customer acquisition and retention. Among
relationships and wants to be treated as preferred
all factors that drive acquisition and retention,
customers. It’s also interesting to note that the
trustworthiness came out on top, followed by low (or
demographics of the Pay More group shift toward the
no) fees, customer service, good mobile and online
younger millennial segment and are not biased toward
banking service, and generous rewards. Lower on the
income levels.
scale was having many locations, offering a low annual
Most Important Factors in the Mortgage Selection & Application Process
Figure 2
Q39: Which of the following factors are most important in the mortgage application process? Choose up to five.
5 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.
34% of Respondents Will Pay More for Most Painful Issues
Superior Customer Service
Mortgage Application Process
• High Cost: 66%
• Slow Execution: 56%
• Difficult Communication: 32%
• Unable to Track Application Status: 31%
• Untrustworthy Advice: 26%
Figure 4
Q41: Which of the following factors are considered to be the most
painful aspects in the mortgage application process? Choose up to five.
Banks Beware
CG’s study uncovers an increasing demand for
alternative lenders:
Figure 3
• 80% of U.S. consumers would consider
a mortgage from a non-bank
Q49: Are you willing to pay more for a mortgage product if it
comes with superior customer service? • 1 in 3 consumers would consider a
mortgage from Walmart
Consumer Frustrations with the Mortgage Process
• 48% would consider a mortgage from PayPal
We’ve established that a) consumer demand for
homeownership is strong and b) they have distinct
opinions regarding what’s important during the
Shifting Customer Service Expectations
mortgage selection and application process. Now the
question becomes: who can deliver what they want? Let’s look more closely at customer service. While the
speed of execution (or lack thereof) causes consumers
CG’s study shows that consumers want choices from the most pain when it comes to customer service,
alternative lenders. Why? It comes as no surprise communication challenges also make consumers
to learn that, given the recent mortgage mess, gnash their teeth. In fact, in CG’s survey “difficult
consumers have a trust issue with big banks (See to communicate with” was the #2 customer service
“Banks Beware” sidebar). Twenty-six percent of our complaint. Add complexity of products (27%) and
survey respondents cited untrustworthy advice as a difficulty completing the application requirements
painful aspect of the mortgage application process. (28%) as painful aspects of the mortgage application
But their issue with banks goes beyond trust. Our process to the mix and there could be more trouble
survey indicates that the following factors are also from a communication standpoint.
considered to be painful parts of the mortgage So, what changes would consumers like to see?
application process for consumers: cost, slow Here’s how it shakes out:
execution, difficult communication, and inability to
track the application status (see Figure 4). • Direct access: When we asked customers how they
would prefer to interact with their lender during the
mortgage application process, 69% said they want
6 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.
direct access to a mortgage representative.
CG Recommendation
This need for direct access comes as no surprise
since 53% of the respondents in CG’s survey view To improve customer retention, don’t forget bank
homeownership as their most important financial branches and call centers. The banks that will
investment. win at customer retention and acquisition will be
• Multiple channels: Direct access is only part of those that have realigned resources to master
the story. Customers also want multi-channel the channel game, recognizing that new digital
communication that is personalized, supplies real channels are complementary and not a replace-
time data, gives them instructions, and provides ment for older contact points.
status updates on the mortgage application process.
To meet the need, Gina Sverdlov, a Forrester Research
analyst suggests banks keep one foot firmly planted in
the future and one in the past, forging a cross-channel Case in Point: USAA Multi-Channel Initiative
sales and service culture that can equally swing Retains Customers
between mobile, web, and more traditional venues
USAA, an institution that focuses heavily on mili-
such as phone calls.
tary personnel and their families, has embarked
Yes, phone calls. According to Sverdlov, phones
on a number of new channel initiatives, including
are still a primary means of connecting with banks,
video access to customer service from remote
even for customers who are tech savvy. “There’s
been a lot of attention placed on mobile and online locations and low bandwidth web banking for
channels. While that’s important, markets should not military members that are stationed overseas.
forget offline channels,” Sverdlov says, adding that
The institution is also developing voice recogni-
nearly a third of U.S. adults who are active online still
tion technology. Called Nina, the voice recogni-
use traditional channels such as phone calls when
attempting to solve a service problem with their bank. tion is similar to Apple’s Siri: users make a vocal
request through the app, which is processed
• Consistency across channels: Customers expect
by Nuance. Nuance’s natural language software
the same level of personalization, intelligent advice,
and product recommendations from digital banking processes the requests, then sends a response to
channels as they’ve come to expect from their the mobile application.
favorite branch associate, according to Devon Additionally, USAA is expanding its network of
Kinkead, CEO of Micronotes, a digital marketing
financial centers that include two-way video and
company that provides tools and technologies to
other technology that connects the institution’s
financial institutions. CG’s study supports this notion.
People know what good salespersonship looks like in members to customer service. “We find the
the physical world. “If you are an existing customer, more [members] take advantage of these tools,
the salesperson comes to the meeting having the more they want to keep doing business with
looked at your accounts and given some thought us,” says Wayne Peacock, executive vice presi-
to what questions to ask,” said Kinkead. “Then the
dent of member experience at USAA.
salesperson asks you a few questions and formulates
options, from which you may choose, and helps you
implement that solution. It’s intelligent, it’s personal,
and it works. As customers continue to flock to the
digital banking channels, they will expect this same
level of service.”
7 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.
Challenges and Demands in the New Normal
Mortgage demand is presenting major challenges
for U.S. banks, who are frustrating customers with CG Recommendation
increased mortgage processing timelines, according
to CEB TowerGroup analyst. Although these big U.S. Leverage your investment in regulatory response
banks are hiring mortgage bankers by the thousands to address the customer needs. Instead of sim-
to meet the surge in demand for originating home ply meeting the mandated terms, listen to what
loans and refinancing, they are still struggling to your customers are asking for and give them
process applications and communicate with customers what they want while leveraging the funding
in a timely manner. What used to be a 30 to 60 day
for addressing regulatory change. Delight your
process has stretched to 90 days or more. Why?
customers with faster execution to close mort-
There are five other key problem areas: gages, improved and proactive communication,
1. Scattered intellectual capital across key and and the ability to track the status of their
ancillary functions. Given banks’ competing mortgage application.
priorities, they are conflicted about where to focus
their human resources. For instance, banks are
grappling to address the shift of key resources from
3. Lack of process standardization. Rapid regulatory
originations to servicing.
change and dramatically altered product options
2. V
olume demand variability (i.e. increased have led to fragmented processes or antiquated
capacity). Many lenders are still trapped in a fixed resource support. Models also have a downstream
cost infrastructure in the face of highly variable effect on abilities to report accurately, efficiently,
industry dynamics. Whether programs (i.e. HARP and completely.
2.0) or other refinance options, lenders also face
4. Lack of technology investment. With inadequate
increasing government incentive / scrutiny to
time for technology implementations, banks are
elevate volumes to levels unsupportable by current
utilizing low cost, minimally skilled labor to execute
operational models. This can lead to: increased
critical functions (aka ‘brute force’).
origination costs and cycle times, process quality
deterioration, and service level goal misalignment. 5. Shifting customer expectations. Customers are
demanding more transparency in the process.
They expect multi-channel communication to
Reality Check
supply real time data, instruction, and status.
What Mortgage Customers Want
”There is a shift into what customers want.
They’ve moved away from wanting more
complex products into more fixed interest rates
and defined terms.“
Doug Hautop
Lending Practice Leader
Carlisle & Gallagher Consulting Group
As seen on CNBC The Closing Bell – Walmart/PayPal
Mortgages – December 7, 2012
8 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.
Why Primary Banks Are Not Capturing CG’s study results reveal why:
Market Share • 75% of customers do not have a specific person
Eighty-one percent of survey respondents have at their bank that they seek out for guidance and
strong satisfaction levels with their primary bank assistance, according to CG’s study. Banks have
(the bank with which they do the majority of their worked to remove the 1:1 relationship in the name of
business), but only 39% have their mortgage with speed and cost, but in doing so they have removed
their primary bank. the sense of community and trust. This has also led
banks to rely on technology to mine customer data
What’s striking is this fact: 70% of respondents
instead of allowing sales people to make connections
would prefer to have their mortgages with their
and incubate customer relationships.
primary bank.
• Customers have a low level of satisfaction with their
The big takeway? Primary banks are missing an
primary bank’s costs and products and services as
opportunity to increase their mortgage business by
seen in Figures 4 and 7. People seek competitive
79% with their current customers. See Figure 5.
interest rates. Often times when they call their
primary bank to lock in on a great rate, the call center
Primary Banks Are Missing Their Fair Share is not able to provide the rate the customer wants.
of the Mortgage Market
• Customer service — an area where banks can
differentiate — ranks lower on the list of primary
banks’ features (see Figure 7). Customers want,
but are not getting, direct access to a mortgage
representative, multi-channel communication that is
personalized, and consistency across channels.
Most Customers Have a High Degree of
Satisfaction with their Primary Bank
Figure 5
Q53: Would you prefer to have your mortgage with one of
your major banks?
CG Recommendation
Customers want the stability and trust factor of
their large primary bank, but will only be retained
if that bank provides a customized service. This
simplistic customization is based on where they Figure 6
fall on the continuum of cost, trust, and service. Q39: What is your degree of satisfaction with your primary bank?
See page 13 for tactics you can employ to make
it easy for customers to do business with you.
9 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.
What is your degree of satisfaction with
you primary bank?
CG Recommendation
Banks have the data to know and understand
their customers. Use it to deepen customer
relationships and talk to customers before they
start shopping for their next mortgage.
advisor/sales person, and prefer to be treated as a
unique customer. 44% of Bond Builders are willing
to pay more for superior customer service.
3. Planners: Consumers who want to understand
Figure 7
expectations and requirements for the closing
Q34: For your primary bank, please rate your level of satisfaction
process, prefer simple mortgage products, and want
with each of the following (1- no satisfaction at all, 5- highest
satisfaction ease in completing the mortgage application.
50% of Planners are willing to pay more for superior
customer service.
Let the Voice of the Customer Be Your Guide
CG’s study uncovered a crucial action item for banks: Each profile has different priorities for what they value
target customers based on what they value in the in the mortgage process as seen in Figure 9.
mortgage process vs. using traditional bank-defined For all three segments, cost remains king when it
segments of asset or relationship level. This new comes to new mortgages and refinancing, but CG’s
approach is critical to the success of banks that seek study shows that it’s a lot more complicated than just
to capture their share of mortgage business in The low interest rates. “You cannot just segment your
New Normal. customers based on your data models and throw
Let’s turn to what revised segmentation might price at them,” said CG’s lending practice leader
look like… Doug Hautop. “To grow share, you must segment your
customers by the way they see themselves and the
CG’s study found three distinct profiles of consumers way they want to interact with you — and then price
who value customer service and trusted relationships and service them appropriately.”
— and are willing to pay for it: Cost Conscious, Bond
Builders, and Planners (see Figure 8).
1. Cost Conscious: Consumers who place the most
importance on cost, the time-to-close factor,
and the simplicity of completing the mortgage
application. 27% of Cost Conscious consumers are
willing to pay more for superior customer service.
2. B
ond Builders: Consumers who value trust in their
financial institution and trust in their mortgage
10 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.Our Analysis Found Distinct Profiles for Mortgage Preferences
Cost Conscious Bond Builders Planners
Figure 8
11 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.Each Segment Has Different Priorities for What They Value in the Mortgage Application Process
Figure 9
Q39: Which of the following factors are most important in the mortgage application process? Choose up to five.
CG Recommendation
Focus on the Cost Conscious, Bond Builder, and Planner market segments as defined by consumer value to match
your target market. Segmentation strategies of the past (i.e. relationship-based segmentation or asset-based
segmentation) will not allow lenders to personalize offerings to the level required to retain and deepen customer
relationships. Don’t leave market share and margin on the table.
12 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.Four Key Strategies to Gain Share in
The New Normal
CG’s research echoes much of what we have seen
in our consulting work. Based on the research data
and our experience in consulting with the top U.S.
lenders, we believe there is significant opportunity for
firms to acquire and retain mortgage customers. But,
with globalization and the Internet providing nearly
unlimited choices, power has shifted from banks to
customers. Let there be no doubt: the customer is
now calling the shots.
So what should lenders do come Monday morning?
Here are four CG recommendations for banks to gain
share in The New Normal:
1. Focus on Cost Conscious, Bond Builder, and
Planner Market Segments The contraction in the market, combined with
Let your customers have it their way. While cost an increase in purchase volume, is forcing banks
is very important, you don’t need to be bottom of to realign resources. Many resources that are
the barrel on pricing. A third of survey respondents knowledgeable in purchase originations are now
are willing to pay more money for trustworthy working in refinance or default servicing. They
advice, speed, relationships, and the right products. need to understand the requirements when
Our study identified three distinct segments of moving from refinance/MHA to full document
consumers who value customer service and trusted purchase loans. These loans, which require
relationships and are willing to pay for it: Cost multiple third party integration points and heavier
Conscious, Bond Builders, Planners (see Figure 8). communication routines, move faster and involve
CG advises mortgage firms to target customers more people. Missing the closing date has more dire
and customize their service offerings based on consequences.
what they value in the mortgage process — rather
than by traditional bank-defined segments of asset To increase loan applications and improve
or relationship level. This is the key to success in pull through, lenders must align resources for
acquiring and retaining mortgage customers while cross-channel sales and service according to
optimizing your margins. customer preferences. Customers expect the
same level of personalization, advice, and product
2. Realign Resources and Streamline Operations in recommendations whether they contact a lender at
The New Normal a branch, on the phone, through email, via a mobile
Historically low rates created a massive refinance application, or online.
volume that lenders were not staffed to support.
This led to elongated cycle times and broken Defining and executing repeatable processes and
communications, creating customer dissatisfaction. procedures that are consistent with and support
Our study shows that the most painful aspects of your firm’s vision, direction, and policies will improve
the mortgage application process from a customer operational efficiency and shorten cycle times,
service perspective are slow speed of execution delighting your customers.
followed by difficult communication (see Figure 4).
13 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.CG believes the door to market share is open for those 4. Leverage the Investment in Regulatory Response
banks who invest in retraining and hiring in the areas to Address the Voice of the Customer
of sales and fulfillment, and invest in high-quality While complying with regulations is a necessary
processes and effective loan procedures. In parallel, CG evil, CG’s study proved that it is not necessarily
recommends exploring outsourcing or other alternate helping banks please their customers. Seventy-
processing models of non-core lending functions seven percent of survey respondents believe that
to allow banks to maximize their ability to meet the regulatory changes will have a worse or no impact
lending demand. Additionally, the ever-evolving loan on the mortgage process. CG believes that banks
servicing process model now features non-linear have an opportunity to address the issues of cost,
components, not unlike the loan fulfillment side of complexity, transparency, and traceability while
the equation. Market leaders will find a way to best complying with regulations.
leverage common technology to bridge the two core
Instead of simply meeting the mandated terms,
functions when applicable; cost savings and human
listen to what your customers are asking for and
capital concentration in core lending functions will be
give them what they want while leveraging the
the result.
funding for addressing regulatory change. For
3. C
apitalize on Market Share Opportunities for example, banks will be required to comply with the
Primary Banking Customers Consumer Financial Protection Bureau’s (CFPB)
Our study shows that most customers have strong new Qualified Mortgage regulations, giving them an
satisfaction levels with their primary bank, and opportunity to improve on technology and process
would prefer to have their mortgages with their points while they are already under the hood.
primary bank. Yet, surprisingly, most customers do
not have their mortgage with their primary bank. Summary
CG believes that banks can increase their mortgage
Current mortgage loan profitability is obscuring
business with their current customers by simply
and delaying the necessary process and technology
making it easy for customers to do business with
changes needed to maintain revenue and margin
them. A few tactics to employ include:
levels at banks. With the decrease in application
• Using technology investments to provide volume forecasted in 2013 and the shift to a purchase
mobile data capture capabilities, thereby money market, banks will have no choice but to retain
making document-gathering less intrusive and grow their current customer base to remain
competitive.
• Mining data on existing customers and
cross-selling targeted mortgage service In The New Normal, there is a fundamental power shift
offerings to them based on what they value from banks to customers. CG believes that banks that
in the mortgage process embrace this change and take the necessary time to
• Driving customers toward the distribution listen to their customers’ wants and needs will not
channel they prefer be caught off guard with surprises. We also strongly
believe that this shift makes it nearly impossible
• Beating brokers to the punch, proactively talking to
for lenders to compete only on price and product.
customers about their next mortgage before they
Lenders who focus on trust and customer service as
express interest
differentiators will gain market share.
• Utilizing online and mobile technologies to allow
customers to track the status of their mortgage
applications
• Communicating proactively with customers during
the mortgage application process
• Providing customers with direct access
to a mortgage representative to improve
communications
14 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.Research Methodology and Demographics Nearly half of the respondents have a household income
of $100,000 to $249,999. The study targeted 50% of
CG conducted a 58-question online survey with
respondents to have household income over $100,000
618 consumers who reside in the United States.
and no more than 25% below $50,000. Participants
The survey was conducted in September 2012,
were recruited from an online research panel and were
and the responses were tabulated and analyzed
required to be over 18 years of age. There was an even
shortly thereafter. The number of people surveyed
distribution of respondents across age segments.
is highly representative of the U.S. population and is
statistically valid.
Household Income Age Distribution
Overall mix of respondents reflects Even distribution of respondents
a higher income base across age segments
Figure 10 Figure 11
Q7. What is your household income? Q6. In what age group are you?
Last Applied for Mortgage
52% of respondents have purchased a new house or refinanced their home since 2010
Figure 12
Q3b: When did you last apply for a mortgage?
15 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.Sources
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banking-license-it-doesnt-necessarily-need-one
2. T
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ack Bay Slated for a New Bank of America ‘Flagship’ Branch, Boston Globe, October 19, 2012, http://www.
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6. W
hat Drives Consumers’ Intentions to Own or Rent, Fannie Mae Economic and Strategic Research, August 2012.
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Survey, November 7, 2012.
8. J
D Power (2008-2010), Mortgage Bankers Association (2011), CEB TowerGroup analysis
9. 2
011 Customer Experience Impact Report, a survey commissioned by RightNow (acquired by Oracle in March 2012),
http://www.oracle.com/us/products/applications/cust-exp-impact-report-epss-1560493.pdf
16 U.S. Mortgage Lending: Strategies to Gain Share in the New Normal | © Carlisle & Gallagher Consulting Group. All Rights Reserved.About Carlisle & Gallagher Consulting Group
Carlisle & Gallagher Consulting Group (CG) is an award-winning
management and technology consulting firm that delivers large-
scale, complex solutions for the world’s leading financial services
organizations. We help our clients solve their most critical business
and technology problems, meet tight deadlines, and plan for future
challenges in an industry operating under unprecedented change and
competitive pressures. Headquartered in Charlotte, NC, CG is inspired
to help our stakeholders succeed – from clients to employees to the
communities in which we live and work. For more information, visit
www.carlisleandgallagher.com.
About CG Lending Practice
CG’s Lending Practice is powered by more than 450 experienced
professionals, including management consultants, lending operations
experts, program and project managers, business analysts, and
technology architects. In fact, our practitioners have an average of
15 years of lending industry experience that they bring to each client
relationship.
CG’s Lending Operations services include:
• Loan Origination & Fulfillment
• Loss Mitigation Remediation
• Foreclosure, Bankruptcy, Escrow Review & Correction
• Servicing Transfers
• Customer Complaint Processing
To learn more about our Lending Practice, please visit
http://www.carlisleandgallagher.com/expertise/consumer-banking
Let’s Get Started
To learn more about how we can help you succeed, please contact:
Tom Mataconis Doug Hautop
CG’s VP of Consulting & Practice Services CG’s Lending Practice Leader
thomas.mataconis@cgcginc.com doug.hautop@cgcginc.com
704.936.1610 704.301.5142
Carlisle & Gallagher Consulting Group
212 South Tryon Street, Suite 800
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