The relationship between consumers and big banks has been far from functional these last few years, but you know things have gotten rough when people would rather put their mortgage application in the hands of a Walmart cashier.
For now, both ideas are little more than pipe dreams. Neither company has revealed plans to offer home loan services, though mega-retailer Costco rolled out a new mortgage service arm earlier this year.
The survey included 618 respondents who answered questions on their views toward home ownership, how recent changes in the mortgage industry impacted their application experience, and what they considered most during the mortgage application process.
The vast majority (80 percent) said they would turn to non-bank lenders if given the chance, citing a host of frustrations.
High interest rates, high payments, and taxes and escrow were the top three most frustrating issues, according to the report. More than half said banks were too slow to approve loans, making it "one of the most painful aspects of the mortgage process."
On top of those shortcomings, banks were hard to communicate with, had issues keeping track of mortgage application status, and offered "untrustworthy advice."
These gripes, of course, are hardly anything new. In the wake of the housing crisis, mortgage servicers and banks were dragged through the mud for predatory lending and other shady practices that many consumer activists blamed for the foreclosure crisis.
“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.”
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