Despite progress the mortgage industry has not won the war in providing satisfying mortgage process experiences to borrowers, especially to Hispanics, and needs to expedite borrower outreach efforts as the market starts to switch focus on originations.
Findings from the inaugural
It is almost double, compared to 24% of the general population that also had an "extremely" or "very stressful" experience when buying their last home.
These insights on the fastest-growing population in the United States are very important for the industry, said TD Bank’s EVP of retail lending, Michael Copley. It matters because despite
TD Bank’s nationwide consumer survey—which included inquiries about the Hispanic home buying experience, attitudes toward maintaining a mortgage and outlook on the housing market—also found that despite the less-satisfying experience when buying their last home, Hispanics “are more likely to buy a home in the next year compared to the general population.”
Hispanics are optimistic about home buying. An overwhelming 80% stated it is a good time to buy a new home, and nearly one-third, or 32%, of respondents said they are extremely or very likely to buy a home in the next year, compared to only 18% of the general population.
In order to reduce mortgage process related stress and help Hispanic homebuyers feel satisfied with the home buying experience, Copley said, lenders “will need resources that can provide increased communication and education throughout the process" from origination to servicing.
For example, 23% of Hispanics said the mortgage process prevented them from closing on time compared to 12% of other respondents.
Index findings were based on a recent survey of more than 1,500 consumers who purchased homes within the last 10 years.
It revealed that 54% of Hispanics found the process of getting approved for a mortgage to be "excellent" or "very good," compared to 67% of the general population.
Over 40% of Hispanics it took three to seven days to go through the preliminary approval, while 21% received approval in one to two days.
At 26%, over one-quarter of Hispanics said the mortgage process timeline from application to approval extended from three to four weeks, the same process took one to two months for 23% of Hispanics.
These findings and the fact that more Hispanics turn to bank/lender websites as a source of information than the general population, at 39% and 34% respectively, indicate lending experiences fall short of borrower expectations and reinforce the need for supportive mortgage partners.
The survey found 70% of Hispanics applied for their mortgage in person compared to 65% of the general population, indicating the in-person banking experience is very important to Hispanics.
Only 16% of Hispanics applied for their mortgage over the phone, at 5% less than the general population. However, the trend reverses with online mortgage applications as 14% of Hispanics applied online, compared to 12% of the general population.
Hispanics rated their lender as "excellent" or "very good" in the following aspects of interaction: Honesty and transparency 60%; Simplicity in obtaining a mortgage 56%; Help in understanding the entire mortgage process 54%; Providing easy to use online tools 51%.
Index findings suggest accessibility, responsiveness, and clarity of the home buying process contribute to overall borrower satisfaction with the mortgage lending experience.
