How are Lenders Performing with TRID?

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Filed under: Market Comentary

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A recent survey conducted by TD Bank’s Mortgage Service Index polled over 1,300 American homeowners over the past ten years who took out a home mortgage and found that even with the new TRID rule, home buyers reported a positive mortgage experience.

The survey, as indicated by writer Xhevrige West, showed that over half of the responses rated their lender as excellent or very good in the following categories: responsiveness, mortgage rate and terms, honesty and transparency, accessibility, and keeping them informed.

In addition, nearly all of the respondents said that their mortgage loan officer was their most valuable resource during the home buying process.

The home buyers also indicated three areas that could be improved.

67% of millennials suggested that banks could improve their mortgage process by educating them and adding more “online” information and resources. The survey also mentioned that 62% of those responding to the survey spent almost $2,000 in unexpected costs during the mortgage process.

Secondly, Kevin Gillen of TD Bank said, “Our data demonstrates that home buying sentiment is improving, but lenders still need to adopt a more omnichannel approach to providing financial guidance and expertise. Consumers should find a lender who can educate and support them on all aspects of the mortgage process.”

Finally, the survey showed that offering home financing seminars and workshops to homeowners would be beneficial. Even though TD Bank reported that 34% of Americans had an excellent experience with their lender, 32% reported their home purchase was “very to extremely stressful.”

Gillen added, “With today’s increasing home prices and the anticipated rise in interest rates, choosing a first-time mortgage or affordability program can be a great way for consumers to enter the housing market. Buyers embarking on home ownership should understand that finding a lender that provides communication and diverse loan options is critical to a smooth, low-stress home purchase.”

The survey also showed that 71% of homeowners rated their most recent buying experience as very good or excellent, which is up almost 10% in the past two years.

If you have any questions about the mortgage industry, please feel free to give me a call so we can discuss whatever is on your mind.

source: http://www.themreport.com/news/origination/04-25-2016/lenders-need-improve-3-areas

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