|
|
|
Competitive positioning study in mortgage industry uncovers need for additional product education, post-closing flexibility and improved service
Two trade associations focused on real estate and finance developed a task force focused on conducting a Commercial Mortgage borrower survey focused on the commercial real estate segment to provide member organizations information about borrower’s perceptions of their capital products.
More specifically, the survey was developed to uncover:
- Decision drivers that borrowers consider when selecting lending sources
- Borrower preferences across capital sources
- Ideas to improve the borrowing experience
Gantz Wiley Research developed a telephone interview survey to understand how borrowers choose among capital sources. It was essential that the CMBS (Commercial Mortgage Backed Security) results be placed into context with other capital sources. Accordingly, the survey also had highly qualitative components to better gauge how borrowers feel about various capital products, how these products fit into their portfolios, and their overall experiences. All parts of the borrowing experience were included in the interview protocol: loan- origination, underwriting, closing, and servicing.
The study provides the initial benchmark for the industry to measure performance against. It also helped to uncover decision drivers that borrowers consider when selecting lending sources and borrower preferences across capital sources. Top factors in selecting a capital source include reliability, rates, loan conditions, clear communication of options and requirements, and loan proceeds. CMBS loans show the most significant differences from the other sources in competitive perceptions—mostly in a very competitive direction.
Participants reported their overall experience with their most recent loan is favorable. GSE and Life Insurance loans were rated most favorably; CMBS loans were rated the least favorably. The study indicated differences in satisfaction across loan sources. Overall, borrowers were least satisfied with loan assumption and loan modification actions.
Study participants suggested these important industry improvements among others: more communication and education (channel options, expectations, terms and conditions, associated costs); enhance post-closing flexibility (ability to improve properties, eliminate yield maintenance; guidelines for most frequent actions); and improve servicing (improve cooperation, service orientation, speed).
|
|
|
|
Our clients
Gantz Wiley Research has worked with leading organizations across the globe. View our select client list.
|
|
