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03 Dec 12 1 in 3 Say They Would Use Wal Mart for Home Loan Services

With all the low rates being offered by banks and mortgage lenders, you would think that consumers would be more content with the current lending environment. A recent survey indicates that people may not be as happy with their lender as you would think.

One in three U.S. consumers would consider a mortgage from retailer Wal-Mart and almost half would consider one from online payment provider PayPal, according to a financial services study to be released on Monday. The results should be especially disconcerting for banks because the two companies do not even offer home financing or second mortgages.

The study shows consumers are willing to try alternative loan companies as borrowers focus on price, customer service and trust in their provider when selecting a mortgage, said Doug Hautop, lending practice lead at the Carlisle & Gallagher Consulting Group, which conducted the survey. “There is a real threat from new entrants,” Hautop said.  The study’s results were based on online responses from 618 U.S. consumers in September. Non-bank mortgage companies such as Quicken Loans and Nationstar Mortgage Holdings Inc have gaining market share as some large banks such as Bank of America Corp pull back in a business that burned them during the financial crisis. Carlisle & Gallagher, based in Charlotte, North Carolina, provides consulting services to five of the top eight U.S. mortgage originators, Hautop said. It’s no secret that bank lenders are maintaining high standards on mortgages and they less likely to approve home loans with bad credit.

A Wal-Mart Stores Inc spokeswoman declined to comment on the survey. The retailer provides small business loans at its Sam’s Club stores, but doesn’t offer mortgages. A spokesman for PayPal Inc, a subsidiary of online auction site eBay Inc, said it offers credit lines for customer purchases, but hasn’t announced any plans to move into the mortgage business. Read Original NBC News Article.

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