A survey released this week by Ellie Mae, which polled more than 500 mortgage borrowers from three different generations, revealed that nearly a quarter of Baby Boomers reached out to a lender online.
Ellie Mae’s survey sought to better understand how borrowers use technology in the mortgage process.
Most of those surveyed recently obtained a purchase loan (53%), while others refinanced (44%) and the remaining (3%) took out a reverse mortgage.
The borrowers who were provided an online portal were twice as likely to say technology improved the loan process.
“Baby Boomers, like Millennials and Generation X borrowers, are looking for a digital mortgage experience.
Our Connecting with Borrowers Online survey showed that for Boomers, online portals made the biggest difference in a positive view of technology, with 79% stating that technology improved the loan process versus 49% for Millennials.” Tyrrell said additional data collected by Ellie Mae indicates that Boomers have a significant and growing online presence.
“The same survey also showed that for Boomers, many are looking for a simpler application, a faster process and more visibility into the process, highlighting the value of the digital mortgage to the Baby Boomer generation.” Leading reverse mortgage lender Finance of America Reverse said it’s ramping up its digital offerings to accommodate borrowers who prefer an online experience.
“We’re seeing this desire for more digital experiences from our own customers and you’ll see us reflecting this approach in both our website and our sales process over the coming months.” Sieffert said catering to reverse mortgage borrowers online is two-fold.
“When we think about what a digital experience should look like for our consumers, we want to make it easy for people who are ready to move forward with a reverse mortgage to get started immediately, while simultaneously providing an educational path for people who are not quite ready to transact,” she said.
“For an industry plagued by persistent distrust, refining digital channels and allowing customers to begin transactions on their own terms are important steps toward promoting more openness and transparency.”