Pandemic Real Estate Boom Yields Digital Mortgage Tools to Simplify and Accelerate Home Loan Process; New Options Emerge Amidst Risk-Driven Home Equity Lending Suspensions
Keynova Group, the leading competitive intelligence source for digital financial services, announced the results of its 2021 Mortgage-Home Equity Scorecard, a consumer experience benchmark evaluating the top 12 mortgage and home equity lenders in the U.S. market. Bank of America and PNC tied for first place in this annual Scorecard, which assesses the digital channels of bank and non-bank lenders used by consumers to evaluate and apply for a mortgage, refinancing, or home equity financing. Both banks lead the market in their evolution of digital home loan offerings in response to the current housing market boom and risk-associated home equity lending pivots.
The 2021 Mortgage-Home Equity Scorecard reveals key industry trends, including a shift among lenders to deliver an all-in-one home lending experience. This encompasses property search through closing with expanded support for home search; enhanced educational content; integrated rate, point, and closing cost details; and expanded e-signature options for application submission and loan closing. Additionally, several lenders are augmenting the digital tools and information surrounding home equity offerings in the face of home equity lending suspensions by three major banks.
“Recognizing that consumers want to be met with flexible services wherever they are in their mortgage or home equity lending journey, a number of lenders are enhancing their applications – enabling consumers to not only make an informed choice but immediately understand the cost implications of a particular loan option,” said Beth Robertson, managing director, Keynova Group. “We’re also seeing expansion in lenders responding to consumer demand for home loan closings using e-sign options, driving more rapid and flexible closing processes during and beyond the pandemic.”
Key Findings:
Holistic Approach to Lending Accelerates and Simplifies Complex Loan Process
Many lenders are now taking a more holistic approach to the home lending journey, helping consumers better navigate this complex process. Chase, Citi, PNC, and Rocket Mortgage are supporting a more end-to-end home shopping experience, adding tools and services that help consumers establish a budget, view properties, and access real estate professionals. Nine of the 12 lenders reviewed in the Scorecard have added new educational content, calculators, and enhanced digital rate quoting, providing more comprehensive information to home loan shoppers.
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Digital Home Equity Offerings Improve Amidst Home Equity Lending Suspensions
Given ongoing and more recent suspensions of home equity lending by several providers, the lenders that have continued offering home equity options are experiencing high demand resulting in enhanced digital applications, content and processes. Citizens, PNC and U.S. Bank have added new elements to improve the digital application for home equity. Citizens and U.S. Bank have joined Bank of America in supporting e-signature for home equity closings, and customers of U.S. Bank and Citizens can view complete home equity closing documents online. PNC is among banks that presents home equity along with alternatives such as cash-out refinancing, personal loans or credit cards to help prospects select the option best suited to their needs.
Keynova Group’s annual Mortgage-Home Equity Scorecard, syndicated since 2005, reviews the digital capabilities and user experience at 12 of the top bank and non-bank lenders in the U.S. market. Evaluating more than 300 detailed and weighted factors affecting digital mortgage and home equity loan originations, this benchmark assesses online and mobile options for consumers to prequalify, obtain preapproval, or to apply for a mortgage or home equity loan or line of credit; to obtain information about loan options, rates, and relevant closing costs; to access tools such as third-party databases or loan application status options; and to use support options including virtual or in-person assistance.
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