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33% Say They Would Buy a Mortgage from Walmart
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 don't even offer mortgages.
The study shows consumers are willing to try alternative lenders 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 been 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.
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.
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