• by Tanya Gazdik , December 4, 2012

Eighty percent of consumers are willing to use a non-bank for their next mortgage, according to a Carlisle & Gallagher Consulting Group consumer mortgage study.

The management and technology consulting firm, which serves the financial services industry, released findings from its U.S. consumer mortgage study, which surveyed 618 U.S. consumers online in September.

Among the findings of “U.S. Mortgage Lending: Strategies to Gain Share in the New Normal,” one in three consumers would consider a mortgage from Walmart and 48% would consider a mortgage from PayPal.

Charlotte, North Carolina-based CG surveyed consumers to learn about their views toward home ownership, how recent changes in the mortgage industry impacted their application experience, which factors are most important in the mortgage application process, and whether consumers would be willing to consider an alternate mortgage provider.

Although consumer satisfaction with primary banks ranked high (81%) the study reveals continued frustrations with current mortgage processes that could drive consumers to alternative home loan providers.

High interest rates, high payments, and taxes and escrow are the top three most frustrating issues regarding consumers’ current mortgages.

Some 56% of consumers blame slow execution as one of the most painful aspects of the mortgage process, and 32% said the mortgage lenders were difficult to communicate with.

Thirty-one percent were frustrated by being unable to track the status of their mortgage application, and 26% said they received untrustworthy advice.

“Consumer attitude is driven by three things -- price, service and trust,” said Doug Hautop, senior manager and Lending Practice lead for CG, in a release. “Institutions looking to gain market share must target customer values instead of traditional asset segmentation.”