Online Mortgage Lending Gains Popularity

The success of online mortgage lending has surprised many credit unions. The number of members willing to use the Internet for such a large financial transaction is spawning a lot of interest.

 
 
Now that the influx of mortgage applications and refinancing has slowed due to the increase in interest rates, credit unions can focus on examining the processes followed for originating mortgage loans. One example that some credit unions are looking into is an online mortgage program. Some may have thought that online lending would only be successful for consumer loans, but member response shows that mortgage activity can be robust in the electronic channel as well.

Callahan & Associates Survey Consortium Group
recently found that 22% of online loan originations among its credit unions are first mortgages. The opportunity for this type of online lending is significant due to the relative complexity of processing mortgages as well as the size of most mortgages compared to other loans.
 

 

 

Aug. 9, 2004


Comments

 
 
 
  • would be interesting to know the dollar volume of online originations
    Anonymous