At a Glance: Amerisave Customers Are Managing Money on the Internet January 5, 2004 ATLANTA --

Pay Bills Online: 71%
Do Banking Online: 70%
Invest Online: 57%
Obtain Insurance Online: 16%

Source: Amerisave

Survey Finds Borrowers Eager to Manage Finances Online
By Scott Kersnar

January 5, 2004 ATLANTA -- The days are numbered on borrower reluctance to transact a mortgage loan online. That was the message of a study just completed by online specialist Amerisave Mortgage, Atlanta.

The December 2003 online survey drew responses from 796 customers who had obtained mortgages through Amerisave over the past six months. These respondents diverged from typical borrowers in that most showed considerable comfort with managing their finances online.

Seventy-one percent said they had used the Internet for bill payment, 70% conducted home banking activities online and 57% used the Internet for investment activities such as electronic trading and asset management.

Sixteen percent said they used the Web to obtain property and casualty insurance.

The lion's share of loans transacted on the Internet to date have been refinances, David Herpers, chief marketing officer at Amerisave stressed, but he said survey results indicate that is going to change. "I would forecast that the trend of using the Web for getting a mortgage will continue upward and will migrate easily into home purchase products," he told National Mortgage News.

What stands out in customer satisfaction reflected in the study, he noted, was that 92% of respondents said they would recommend the process to a friend. Though the Amerisave website has only been operating since 2002, Mr. Herpers said 10% of its business is already coming from customer referrals.

The survey reinforces the general view of the Internet as a key source for mortgage-related information. More than seven out of 10 of those surveyed listed the Internet as a "very important" source of mortgage information.

What most drove respondents to get a mortgage through Amerisave was price, the survey showed.

Asked the reason for their decision, 77% cited cost savings, 38% cited the convenience of the online process and 24% said they preferred applying anonymously as opposed to dealing face to face with a loan officer.

What shows growing borrower confidence in the self-service process, he said, is that one-third of Amerisave customers lock a loan without speaking to a live Amerisave employee.

None of those responding were first-time borrowers, he said, probably because Amerisave targets higher-income borrowers with 700-plus FICO scores and doesn't offer FHA loans and other products aimed at first-time homeowners.

Mr. Herpers said the reason 77% of respondents cited cost savings as their primary reason for getting a mortgage through Amerisave is that Amerisave provides upfront rate quotes and closing costs that borrowers can compare with quotes and good faith estimates they get from lenders offline.

"When they compare those with the savings they see on our website, they go ahead with our process," he said.

In addition to providing instant rate and closing cost quotes, www.amerisave.com offers a streamlined online application process and the ability to get rate locks 24 hours a day.

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