A company that does not get mentioned here as frequently as they probably should, for what ever reason, released their bi-annual benchmark study last week. I was going to cover it as soon as it came out, but I was actually going to make an effort to try and acquire the study, but did not have any luck, so this post isn’t as timely as I would have liked, but better late then never.
That said, many of you have probably already seen the press release, if not you can download it here, MortgageBot Benchmark Study. First, I love the fact that MortgageBot puts the time and effort into putting a report like this together for their clients. They have the data, so why not share it?
The report takes a look at a number of key statistics like demographic profiles, average approval rates and loan abandonment rates. Here is some of their public findings:
-- The online channel continues to generate more loans. Approximately 40 percent of lenders take more than 25 percent of their applications via the online channel -- up from only one percent at the start of the decade. -- More and more borrowers prefer the online channel. During 2008, the number of people completing online mortgage applications increased in every demographic category from 30 to 69 years of age. The "Gen X" demographic continued to outperform other groups, with nearly one in three of all online mortgage applications coming from adults in the 30 to 39-year-old bracket. -- Online borrowers' household income is increasing. Despite a challenging economy in 2008, the household income of online borrowers rose to $93,717 -- an increase of 10 percent compared to 2006. -- Today's online borrowers have increasingly solid credit ratings. The average credit score of online borrowers continues to climb -- rising from an average of 709 in 2006 to 732 in 2008.
I highlighted some very interesting points. Let me get off track just a bit. Over the last month I had a number of conversations regarding the mortgage industry and the statement that was being repeated by the different industry players was that mortgage seemed to be making a little come back. What does that mean? It meant that mortgage lead sales seem to rebounding. And these numbers support those comments, to an extent. It also backs up the fact that no matter how leads are going to be generated online in the future they are going to be generated online. Additionally you are going to have to figure the model out and learn how to work leads properly.
As much as we like to discuss the fact that the consumer is sick of the current process of and receiving 100’s of calls from pushy loan officers the facts remain that more and more people are going online for their mortgage assistance. Sure, the look and process of collecting and distributing mortgage leads may change, but again people will still revert to the Internet for information. Are you ready? Can you efficiently work internet inquiries? If not, you might want to look into it.