The Internet Is Mainstream. (Cover Report: Technology)

By Myer, Warren H. | Mortgage Banking, March 2002 | Go to article overview

The Internet Is Mainstream. (Cover Report: Technology)


Myer, Warren H., Mortgage Banking


What a difference five years make. -- The fifth annual Internet Mortgage Industry Survey, conducted exclusively for Mortgage Banking by Myers Internet Inc., clearly indicates that the Internet is now mainstream and has permeated every facet of the mortgage industry. -- Looking back at how far the mortgage industry has come from its first experience with the Internet reveals a substantial transformation. -- "I've watched it go from such an unformed channel to a legitimate, viable channel. It's interesting to see how uncharted everything was and how it formulated into a comprehensive business model." So says Sean Marsh, senior vice president of business development for Alliance Mortgage, Jacksonville, Florida.

In the Myers/Mortgage Banking Internet mortgage survey for 2001, a resounding 88 percent of lender respondents indicated they plan on continuing their Internet presence, clearly demonstrating that the Internet adds significant value to their business (see Figure 1). In addition, 43 percent of the companies surveyed had been doing business on the Internet for more than three years (see Figure 2), compared with just 21 percent in the 2000 industry survey.

Michael Moore, director of business development for Deep-Green Bank, Independence, Ohio, says about the Internet, "It works--people shouldn't be shocked by it. Just take it for granted." Another survey respondent noted, "The Internet is an integral part of our business. We could not operate without the ability to use e-mail, access other companies' Web sites and have customers access ours. The best feature of the Internet is that it is on 24/7/365."

This was the second year that the survey was conducted completely online. The link to the survey was also sent out to more than 3,000 mortgage companies via e-mail. Our list of online mortgage companies was compiled from research done through major Internet search engines as well as the leading mortgage aggregators. A total of 616 companies completed the survey.

The consumer survey was conducted online at loanapp.com, bestrate.com and mortgage-net.com, and a total of 507 consumers completed the survey. To conduct the survey, Myers Internet Inc. used online tools provided by Zoomerang, a leading provider of online customer surveys.

The primary benefits

The primary benefit of the Internet is that it enables mortgage professionals to be more efficient and originate more loans in less time. While 42 percent of survey respondents indicated that the Internet is a significant source of new business, more than 56 percent indicated that the Internet is a useful tool to market to existing customers. This implies that the Internet may be even better-suited for customer retention than customer acquisition.

Consumers have embraced the Internet, thereby making it a viable medium. The majority of consumers surveyed have been using the Internet for more than four years, and 82 percent of them have made an online purchase (see Figure 3).

The fact that the Internet is now mainstream is also evidenced by the fact that the average household incomes for Internet users is dropping. Seventy-five percent of the consumers surveyed had household incomes of less than $60,000 per year. In prior years' surveys, the average incomes of Internet users were much higher. While average household incomes for Internet users is still higher than average U.S. household incomes, the disparity is shrinking.

Consumers love the convenience of using the Internet, along with the ease of access to educational tools and content. Interestingly, while 83 percent of consumers said they would complete an application online, only 20 percent of them had actually done so. (These numbers might appear to be high--and rightfully so, because the survey respondents were consumers who were browsing online mortgage sites. Had the survey been conducted with consumers at random, the number likely would have been lower. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Internet Is Mainstream. (Cover Report: Technology)
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.