E-Commerce Times Talkback
See Full Story
More and more mortgage shoppers are going online to find loans, but when it's time to seal the deal, most prefer to take their business offline, according to a study scheduled to be released Tuesday by Forrester Research and Compete Inc., both based in Boston. Over the past two years, consumers researching mortgages online have increased 17 percent, according to the Forrester-Compete report, a copy of which was obtained by the E-Commerce Times, but that research is more often than not the precursor to an offline transaction.
As the now retired co-founder of two multi-billion dollar national internet origination units, I believe that much of the article is true. However, the article seems to imply that internet lenders have no human presence. This is incorrect. Trust me, if there was a way to make purchase loans online, without human interaction, I would have done it. Every online first mortgage lender is basically a telemarketing center. Some are great some are bad (like anything else.)
The article mentioned Lending Tree, Lower my bills and next tag having good tools. I have purchased leads from all three. Their model is basically; “give my your information so I can sell it to telemarketers.” They have little or no desire to engage and keep the customer. They are an introduction service to lenders who pay them for leads. I have always wondered why any reasonable person would give out personal information online just to have sales people call (perhaps that ‘no call list’ thing is just a fad.) Obviously theirs is a flawed model. I strongly advise you readers to follow you advice to shop, shop and shop. The best deals will be found online with reputable lenders. You don’t need to have a introduction service to find them. Lenders pay a huge amount of money for your information and will have to collect that from their borrowers.
Lastly, here is a poke at lending tree’s tag line: “when banks compete you win.” Which banks? The ones they choose for you. What if you have great credit and all four offers are from sub-prime lenders? See why an introduction service is harmful? So follow the article’s lead and shop, shop and shop! Work with a smart human that lets you lead the conversation and know what best suits your needs not theirs.
~Richard, The Renegade Banker.