MeridianLink® (NYSE: MLNK), a provider of modern software platforms for financial institutions and consumer reporting agencies, has announced the results of a nationwide survey of over 1,000 Americans regarding consumer behavior and expectations during the mortgage lending process.
The survey reveals that:
- 31% of Americans are less confident in their ability to afford a home today compared to five years ago,
- 55% of consumers expect mortgage rates to continue rising through the end of 2023.
- Lack of knowledge may also be a contributing factor, as 22% of Americans reported not understanding the mortgage process.
- Almost half of Americans (45%) will explore other options before obtaining a mortgage from their primary financial institution.
- 41% stated that their primary financial institution offered no mortgage lending support.
- The top reasons consumers cited for choosing a mortgage lender were low closing costs and better rates (53%), positive brand reputation (40%), and flexible repayment options (36%).
JP Kelly, SVP of Mortgage at MeridianLink®, emphasized the importance of financial institutions equipped with the right tools to assist consumers during significant financial milestones like purchasing a home.
"We are proud to offer credit unions and banks a platform that enables them to provide personalized mortgage support, streamline the lending process, and reach more potential consumers during the initial shopping phase," said Kelly.
Based on the insights from this study and MeridianLink's experience working with over 2,000 financial institutions, the company provides the following tips to lenders seeking to expand their mortgage business:
- Simplify and streamline the mortgage lending process to make it easily understandable and convenient for consumers. With many consumers willing to explore other options, creating a seamless experience with minimal obstacles is crucial for retaining customers. MeridianLink® Mortgage, the mortgage loan origination component of the Company's multi-product platform MeridianLink® One, provides an excellent solution for creating and managing this seamless process.
- Proactively offer consumers tailored offers and support based on their needs to avoid losing them to competing institutions. MeridianLink® Engage, the company's marketing automation solution, is a powerful tool that helps credit unions and banks efficiently and effectively engage consumers.
To access a report with more detailed survey findings, please download it here.
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