This won’t be the first time we’ve said this, and it may not be the last either.
Things are about to get more competitive in the mortgage industry.
Our friends at MReport published a nice article about just that recently. Nothing new, necessarily, but the points bear repeating. Rates are rising. Margins are thinning. It’s time for lenders to transition from casting their nets into fertile waters to picking the right lures or bait as they tend to the poles. Borrowers will have to be won one at a time, and the purchase cycle takes longer.
While the article really focuses on marketing to consumers, let’s diverge from that for a second. It’s also a great argument for the importance of the customer experience (CX). Yes, we know that the typical borrower focuses on rate. Yes, we know that most consumers opt for the first or second lender they come across.
And yet, we’ve also seen time and time again that if a business greatly exceeds the standard in just about any industry, people will—as they become aware of it—flock to that business. We know that many (if not most) consumers dread the home financing process. They perceive it as an endless, confusing wait punctuated by an archaic ritual involving pen and paper (lots of paper). There are reams of research that tell us that consumers don’t understand why our process isn’t as smooth or fast as, say, financing a car or a student loan. And they don’t want to hear about the regulatory labyrinth superimposed on mortgage lenders. They don’t care.
We believe that the lenders who master CX can change the game. If a lender stands out to the point that people begin to mention that lender as “the one that moves faster and doesn’t make you do everything over the phone,” we think that CX will become a leading factor in winning new customers. Which will be critical in this fast-rising purchase market.
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