Would you rather get a mortgage from Wal-Mart?

One-third of consumers said they'd pay more for a home loan if it would ensure better customer service. The issue is particularly important for younger borrowers.

By Teresa at MSN Real Estate Mar 6, 2013 2:17PM

Keys to a new home on mortgage papers (© SuperStock)A third of consumers say they would pay more for a mortgage if it came with better customer service, and the same number are so frustrated with banks they’d go to Wal-Mart for a mortgage if they could.

The study by the consulting firm Carlisle & Gallagher was aimed at telling banks what they could do to grab a bigger share of the mortgage business. But it also provides a glimpse of customer attitudes toward banks and mortgage companies.

 

"There is a power shift from banks to customers, who are demanding choices and more transparency into the mortgage application process. This shift makes it nearly impossible for lenders to sustain differentiation based solely on price or product," Tom Mataconis, vice president of consulting and practice services for Carlisle & Gallagher, said in the report. "Trust and customer service are the key differentiators that will allow banks to gain market share in The New Normal."

 

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Since the real-estate bust, customers have complained how difficult it is to get a mortgage. That difficulty has kept many would-be homebuyers out of the market. But the difficulty in getting a mortgage is not just in qualifying. Customers who are good candidates for mortgages and eventually get one also complain about the difficulty of the process.

Add those complaints to the complaints of customers who have found the process of getting a mortgage modification frustrating, not because they don’t qualify but because banks are inefficient, lose paperwork, don’t respond to phone calls and otherwise provide poor customer service.

With fewer Americans in the position to qualify a mortgage, perhaps those who do qualify will be able to demand better customer service from banks that have to complete for their business.

 

While the cost of the mortgage still remains the most important factor (84% of respondents rated it the most important factor), trust in the financial institution and customer service also matter to a significant number of customers.

Thirty-four percent of the customers said they would pay for more a mortgage if it came with better customer service, and 52% of those would pay more to guarantee an easier process. Interestingly, the millennial generation was most likely to say they’d pay more to get better customer service.

 

What do you think it will take to make banks and loan servicers provide at least the same level of customer service you get from Wal-Mart?

 

Tags: loans
 
83Comments
Mar 23, 2013 6:07PM
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I think it's a sad state of affairs when so many people that WalMart, of all companies, gives good customer service - or any kind of service for that matter.  They have managed to run several bigger companies off the map, and ruined many small businesses (and their owners) over the years.  And when you look at it that way, it DOES make them a great comparison to many of the Banking institutions out there today.  Any business model based on greed, and creating a business demand through a monopoly, is not in the best interest of the consumers.
Mar 23, 2013 4:13PM
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Banks treat people any  way they choose because the culture is brainwashed into believing that if you don't have a bank account there is something wrong with the individual. We buy into that false reality.....no wonder they are too big to fail..WE are the ones that have made that a reality.
Mar 23, 2013 4:06PM
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Wanna F all the banks? Stop borrowing and pay cash. DUH!!!!!!
Mar 23, 2013 1:36PM
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I would have to pass on the tooth less, no bra wearing, sweat pant styling, fake pearl necklace caught on her tracheal ring betty across the table trying to get me to sign on the dotted line to give me the keys to my dream
Mar 23, 2013 1:18PM
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Who would want to sell mortgages at Wal-Mart for $8.00 per hour and no benefits?
Mar 23, 2013 12:43PM
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I would rather have a Wal-Mart mortgage anytime than I would a Beneficial HSBC Mortgage. Take it from one who knows BENEFICIAL SUCKS and their employs are first class ****S.
Mar 23, 2013 11:29AM
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At our bank we treat customers like they mean something to us as community friends. The problem today is that we do not have folks wanting loans, even at rates that are unheard of. You hear banks don't want to lend money, but at our bank even with the low rates we don't have very many requests.
Mar 23, 2013 11:24AM
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Do you see the way Wal Mart customers dress to go to a WalMart? Can ou jut imagine how the Loan Officers would dress? In a blue shirt with "Can I Help" written on it.No thanks.
Mar 23, 2013 8:19AM
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Wal-Mart has good customer service?!?
Mar 23, 2013 7:51AM
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So would I have to send my payment to China? I'd bet half of our trade deficit is due to WAL-MART. Or as I call them CHEAPO INCORPORATED.
Mar 23, 2013 5:58AM
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Obtaining a mortgage in today's lending environment will be a hassle no matter what lender you select. The BIG banks and regional are the worst.

The level of service you receive will depend on how well prepared you are as a borrower.

 

Walmart is NOT  lender. They will hook you up with a lender. Walmart gets compensated for this.

ERGO It will most likely cost you more to go that route.

Stick with a LOCAL lender in your market that is reputable.

Mar 23, 2013 1:11AM
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Atleast Wal-Mart wouldn't call me 4 times a day, asking where our mortgage payment is, that isn't even late... When we go one day behind, the phone calls go to 6 times a day and don't let it be a week, or they are sending someone to the house... 

I wished we could have mortgaged through Wal-Mart, would have been better than the big W** ***** bank that we were sold to, before the ink dried on our little mortgage lender... We have been with them a year and the day that we can refinance and change mortgage companies, we will be gone.. You would think they would go after people 6 months late on their mortgage, not people that aren't even late yet...
Mar 20, 2013 3:54PM
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"The study by the consulting firm Carlisle & Gallagher was aimed at telling banks what they could do to grab a bigger share of the mortgage business"

 

The banks brought the world down in economic flames with the share of the mortgage business they had. Why on God's green earth would we want them to have an even BIGGER share now?

They never even said sorry for all of the pain and misery they caused - all they did was blame everyone and everything but themselves. I'm still waiting for someone to go to jail for what happened but I won't hold my breath much longer - 6 years is long enough.

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I can't afford to shop at Walmart so I doubt I'd be able to get a mortgage from them either. Regardless, the thought of purchasing a home with Walmart scares the H*ll out of me!
Mar 18, 2013 8:19PM
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if you all think walmart would treat you right, you would be WRONG !! oh, they might be nice in the beginning to get your business, but if the least little thing went wrong, they will treat you like crap !!! I know....I used to think it was a great company, and when Mr. Walton started and ran it, it was, but now, they are a money grubbing big business BULLY that doesn't give a crap anout anyone but themselves and lining their pockets....and train their associates to do the same. I fell and was injured in one of their stores and was treated like **** !

They aren't any cheaper than other grocery stores, and they make the 'price matching' soo difficult....I would rather shop anywhere else now. You may not believe me, but when/if something happens to you or anyone you know, you will understand what I am saying.

Mar 18, 2013 7:31PM
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I'd love to see Wal-Mart get into the mortgage business.  Give the banks some serious competition!
Mar 18, 2013 7:30PM
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**** this country and the entire financial institution.. When i was growing up, my parents and practically every other person i knew had parents with a mortgage and a secure job... Now im mid 30 and i hardly know anyone with a mortgage let alone a secure job. The ****ing banks should have rotted when they ruined the entire housing market. Now people are paying OVER 50% of their monthly incomes to mortgage / rent. The old saying which still holds true is 30% or something is the most of your monthly income you should alot to housing. The people really need to wake the hell up and put their foot down.......... We own this country and until the people make a stand, big corporations will continue to own YOU!!!!!!!!!!!!!!
Mar 18, 2013 6:20PM
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Can anyone see the big picture here; China already owns Wall Street and D.C   Must we now sell them the rest of America by Parcel one Mortgage at a time...
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