Lenders and mortgage brokers that have invested in social media for marketing and communications will generate disappointing results.
That’s because borrowers are more likely to respond to traditional forms of marketing and communication than to a Twitter advertisement, a Facebook post or another form of social media, according to Borrower Preferences and Mortgage Originations, a survey from SecondaryWire, the wholesale mortgage exchange, located in San Francisco. Survey respondents are mortgage purchasers and represent a cross section of mortgage borrowers.
“The results of our survey showed social media was neither significant as a communication channel nor did it impact the decision of where to go for a loan in any significant kind of way,” said Larry Mullen, senior vice president and founder of SecondaryWire. “Social media was preferred by just six percent of respondents, so it isn’t important to borrowers—and won’t factor into their decisions on purchasing a home loan.”
One point the data drives home. Borrowers selected the lender or mortgage broker for the same reasons they had done so for years, as follows:
Among the top reasons for selecting a lender/broker were the following: The lender with the lowest rate, 47 percent; able to meet my terms, 32 percent; reputation of company, 31 percent; existing banking relationship, 31 percent; had the best mortgage products, 30 percent.
A referral from someone I knew, was sixth, 28%. For a transaction that’s as important as purchasing a mortgage, it’s a bit of a surprise that the choice—of a referral--failed to rank among the top-three. Still, it did better than the social media options—which were at the bottom among all choices.
Only 13 percent of respondents thought an online loan application was important. Virtually no one considered it important that the lender/broker had a mobile app, 6%. And a referral on social media was virtually worthless, with 1% responding that it was the reason for their selection of the originator.
What were your most important reasons for selecting the lender/broker who processed your loan? (Respondents could select more than one answer.)
| Reason | % |
| Had the lowest rates |
47% |
| Able to meet my terms | 32% |
| Reputation of company | 31% |
| Existing banking relationship | 31% |
| Had the best mortgage products | 30% |
| Referral from someone I know | 28% |
| Had an office in my area | 27% |
| Past experience with the mortgage company | 21% |
| Had an online application process | 13% |
| Past experience with the individual broker | 11% |
| Had a mobile app | 6% |
| Referral on social media | 1% |
To devotees of social media, it might come as a surprise that 64 percent of respondents preferred to communicate with their originator with their phone, 39 percent; or in person, 25 percent. The responses haven’t changed very much from what answers would have been five, 10 or even 15 years ago. Fully 29% preferred to use email to communicate, despite security risks and exposing their personal confidential data to cyber-thieves. As for social media, six percent said they preferred to use social media to communicate. Just one percent preferred to use video chat and online meeting platforms.
