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Millennial buyers embrace mortgage tech — but still crave personal touch

JD Power study says lenders still have a long way to go in using technology to address pain points in mortgage transaction
  • Although digital mortgage lending channels have been proved to reduce lender costs while increasing customer satisfaction, young potential buyers still say technology does not go far enough in educating them about the homebuying process.
  • Customers who apply for mortgages online will likely place more importance on an effective review of closing documents and lenders having dynamic websites.
  • At the end of the day, loan representatives will still be on the front lines when it comes to responding to questions and concerns and ensuring that buyers understand each step of the process.

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While millennials are eager technology adopters and users, they still crave personal interaction, guidance and advice when it comes to making important financial decisions like buying a home, according to JD Power’s 2015 U.S. Primary Mortgage Origination Satisfaction Study. The study examines customer satisfaction with the mortgage loan origination experience among the nation’s largest mortgage lenders in the United States, and it also provides a guide for how firms can improve the mortgage process. According to the study, millennials are heavily influenced by an increasingly digital world. An overwhelming 85 percent of potential future homebuyers own a smartphone, and 94 percent of them begin their home searches online. Almost three-quarters of millennials say they would be more excited about a new offering in financial services from online titans Google, Amazon, Apple, Paypal or Square than a new offering from their own national bank. But although digital mortg...