Online Technology Likely to Play Larger Role in Mortgage Process

01/03/2014 By: Tory Barringer 

A recently released borrower survey on shopping habits shows increasing reliance on online tools when mortgage shopping, though many still find the learning curve too steep.

Fannie Mae’s Economic & Strategic Research Group released Thursday the findings from its latest topic analysis. The data was taken from consumer survey results from throughout the second quarter of 2013.
According to the group, the collected data show higher income borrowers—those earning at least $100,000 per year—are more likely to use online applications to make their own mortgage calculations, while low earners—those

making less than $50,000 annually—rely more on real estate agents, lenders, and advice from family and friends in making their borrowing decisions.
In addition, when asked for suggestions in making the shopping process easier, high-income borrowers focused more on the technological side, with most saying they would like an improved way to compare multiple loan offers. On the other hand, low-income consumers were more likely to say they want easier-to-understand loan terms and costs.
“Higher income borrowers are using online shopping approaches about twice as frequently as lower income borrowers, which aligns with a stronger focus on doing their own calculations and using tools,” the research group’s business strategy director, Steve Deggendorf, said.
However, Deggendorf noted, all income groups said they would like to make greater use of the Internet than they currently do, “indicating that online technology will likely play an increasingly larger role for all borrowers in the mortgage shopping process and presents opportunities for shopping enhancements.”
“Enhanced online tools … could help consumers of all incomes to become better mortgage shoppers and achieve better outcomes by addressing the issues they think will make the process easier,” he added.