Onbe, a corporate payouts platform, recently published its Spring 2024 Title, Escrow and Mortgage Payments Survey. It suggests that home buyers overwhelmingly prefer digital payouts; 92% of respondents stated receiving a digital refund would be more convenient compared to waiting for a check in the mail.
In an April 2024 Freddie Mac report, the mortgage market saw a 3.9% month-over-month increase in activity, with a 5.9% increase in refinancing activity and a 3.2% month-over-month increase in purchase applications. With 50% of homeowners having received a title, escrow or mortgage refund, Onbe said there is a significant opportunity for companies in this space to meet the preferences of consumers by providing them with the instant and convenient payout experiences they desire.
According to the Onbe survey, 54% of respondents who have escrow accounts reported receiving a refund from their mortgage service provider. In addition to escrow refunds, 61% of homeowners received a mortgage payment refund after their loan was sold to a new lender.
However, homeowners’ refund experiences did not match their payment preferences, as 44% of respondents receiving their payout via a check in the mail. By delivering seamless digital payout options, mortgage, title and escrow companies can meet buyer’s evolving payment preferences and needs, helping improve their home-buying experience.
“As the preference for digital payouts continues growing, buyers deserve the same choice and convenience they experience elsewhere in their lives as a fundamental part of their homebuying journey,” said Melissa Hentschel, chief client officer of Onbe. “By leveraging a digital payout gateway, mortgage, title and escrow companies can offer a secure refund experience driven by choice and preference, creating a more seamless experience for homebuyers.”
Additional findings from Onbe’s Spring 2024 Title, Escrow and Mortgage Payments Survey include:
- Virtual prepaid cards are the most preferred digital option among consumers when receiving a refund from their mortgage lender;
- Accuracy (28%), convenience (28%), and choice (17%) are the most important factors for buyers when receiving a refund payment related to a home loan; and
- 41% of consumers received a refund from their title and escrow due to overpaid closing costs, resulting in a balance in their account.
