Rising Interest Rates Reinvigorate Mortgage and Home Equity Lenders’ Focus on End-to-End Digital Assistance

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Keynova Group Releases 2022 Mortgage Equity Scorecard

WILMINGTON, Del., August 24, 2022 /PRNewswire-PRWeb/ — Keynova Group, the leading source of competitive intelligence for digital financial services, today announced the results of its 2022 Mortgage-Home Equity Scorecard, a customer experience benchmark evaluating the top 12 U.S.-based mortgage and real estate lenders. . Bank of America earned first place overall in this annual scorecard, which assesses the digital channels of major bank and non-bank lenders used by consumers to assess and apply for mortgage, refinance or home equity needs. .

The 2022 Mortgage Scorecard reveals key industry trends, including the integration of home buying services, which are becoming a dominant component of the mortgage origination process, the increasing use of incentives to drive consumer engagement and expanded access to digital or hybrid-digital closure options.

“Rising interest rates make a positive lending experience throughout the end-to-end digital home buying journey critical to driving closed loan volume,” said Beth Robertson, Managing Director, Keynova Group. “Capturing the buyer’s attention early in the process with home search assistance, informative content, a range of lending products and meaningful incentives is key to building long-term customer loyalty.”

Main findings:

Lenders encourage closings with integrated home buying services
Home buying services have become an integral part of the digital support that mortgage lenders offer potential homeowners to help them through the complex home buying experience. These suites of digital services extend beyond an app to encompass planning, budgeting, education and property search services. In 2017, PNC Home Insight Planner pioneered the market by integrating a comprehensive user profile, goal-based budget and home search resources to help applicants identify properties that meet their needs. Today, 50% of lenders rated in the dashboard offer a property search option that identifies suitable properties, connects potential owners with real estate agents, and provides consumers with tools and content to inform their journey.

Incentives help drive candidate engagement
In what has been a tight and very active real estate market, the incentives are helping lenders drive engagement and drive higher closed loan volumes. Today, 75% of lenders offer a mortgage or refinance reward or incentive program. These include rewards for using property search services, rebates or cash for closing costs, automatic payment rebates, rate matching incentives and interest rates discounts or closing cost credits for existing customers using other services. For example, Bank of America’s industry-leading Preferred Rewards program spans many product lines, including home loans, and offers tiered benefits such as reduced mortgage origination fees or reduced rates on home equity. Another attractive offer, backed by nearly 20% of lenders, is an on-time closing guarantee, an option that can build consumer confidence in the lender’s commitment to ensuring an efficient home buying experience.

Digital settlement streamlines a remaining hurdle
Digital closing remains an opportunity for most Scorecard lenders to create a fully online experience that simplifies processes and creates value for the end user. Digital settlement options are now offered by 42% of Scorecard mortgage and refinance lenders, while 33% support the option for home equity products. Since regulations may still prohibit electronic processing of the entire settlement process, hybrid options, such as those offered by Guaranteed Rate and Rocket Mortgage, can be used to allow applicants to sign most documents electronically and to meet in person to sign the remaining documents which may require the presence of a notary or a lawyer.

Innovative initiatives balance some ongoing home equity suspensions
As rising home prices and interest rates potentially cool the market for new home purchases, lenders may see renewed interest in home equity loans. Currently, home equity suspensions continue at Chase (since April 2020), Wells Fargo (May 2020) and City (March 2021), but other lenders are launching new initiatives. Guaranteed Rate is the first non-bank Scorecard lender to launch an innovative fixed-rate HELOC with same-day approval, digital close, and the ability to get funding within five days. By comparison, 42% of lenders offer a fixed-rate conversion option for variable-rate HELOCs, while two bank lenders — Citizens and US Bank — are actively promoting digital home equity fences. Additional updates include 25% of lenders offering home equity content in Spanish and 17% supporting live chat for home equity loans.

About the Keynova Group Mortgage Scorecard
Keynova Group’s annual Mortgage Equity Scorecard, syndicated since 2005, objectively examines the digital capabilities and user experience of 12 of the leading bank and non-bank lenders in the United States. , Chase, Citi, Citizens, PNC, Truist, US Bank and Wells Fargo, and four of the largest non-bank mortgage lenders: Freedom Mortgage, Guaranteed Rate, loanDepot and Rocket Mortgage (formerly Quicken Loans). For more information, please visit https://www.keynovagroup.com/scorecards/#credit-cards-and-lending.

About the Keynova Group
Keynova Group is the nation’s leading competitive intelligence company that provides trusted information and benchmarking on digital financial services for consumers and small businesses, including banking, credit cards, home loans and insurance. Since 1999, Keynova Group’s scorecards have been the go-to source for leading financial services companies to gain reliable competitive intelligence and actionable insights. The company’s proven methodology and highly detailed results help its clients maximize the value of their digital channels to deliver a top-notch experience to their customers and prospects.

Media Contact

Megan MansonKeynova Group, 301-371-6995, [email protected]

SOURCE Keynova Group

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