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Would you take out a mortgage with Walmart?

Posting in Technology

Either home-buyers in the United States are losing trust in banks or they think Walmart and other non-banking companies should get in the financial services business.

A survey from Carlisle & Gallagher Consulting Group found that one-third of Americas would consider taking out a mortgage with Walmart, about half would consider a mortgage from PayPal. Impressive numbers for a financial service that neither of the companies offer.

Even if they decided to start offering mortgages, they wouldn't be the first retailer to offer home loans, Reuters reports:

It's not unheard of, though, for retailers to enter the mortgage business. In late 2011, warehouse retailer Costco Wholesale Corp (COST.O) began offering home loans online through select lenders. The company doesn't disclose loan volume, but the service has gone well, said Jay Smith, Costco's director of financial services.

"We have tried to make it a service where members see significant value on rates and fees," Smith said.

Reuters says that more and more non-bank mortgage companies are increasing their market share as large banks are putting less of an emphases on home loans.

Still, while 80 percent of respondents to the survey said they would consider a non-bank for their mortgage, 70 percent said they would prefer to get their loan from a bank.

One in three U.S. consumers would consider a Wal-Mart mortgage: study [Reuters]

Photo: Flickr/Walmart Corporate

— By on December 3, 2012, 3:24 AM PST

Tyler Falk

Contributing Editor

Tyler Falk freelance journalist based in Washington, D.C. Previously, he was with Smart Growth America and Grist. He holds a degree from Goshen College. Follow him on Twitter. Disclosure