The pioneers are making their moves!

As we reported last month, the market for online real estate and mortgage information is rapidly gaining critical mass. We estimated that already 10% to 15% of mortgage applicants are at least influenced by information gathered online . But with less than one in ten of those following through with an online application, you could reasonably conclude that user demand is low.

We don’t think that’s so. Web users may not be knocking down your door trying to submit an online application. But why? Is it because they like you so much they crave a one-on-one experience with your loan officer? Perhaps. More likely, they are borrowing elsewhere, either from a competitor feeding off the flow of leads from GetSmart and others, or simply responding to whatever direct mail solicitation arrived the day they needed some cash.

There’s another reason why U.S. online mortgage loans funded is a paltry 20,000 to 30,000 per month (OBR estimate plus 100%, minus 50%). Lenders have done a poor job reassuring users that online applications will be handled in a safe, secure, and timely fashion . Many lenders are driving users to more expensive channels, or into the hands of the competition with lackadaisical Webs and uninspired marketing.

However, there are exceptions:

•  Although not a mortgage lender yet, Nextcard from Interactive Access Financial Corp. has the best sales-oriented financial Web site we’ve seen.
•  E-Loan, the centerpiece of Yahoo’s new Loan Center, has made mortgage shopping interactive, enjoyable, and understandable.
•  GetSmart, a wildly successful lead-generation site which recently announced a $50 million online marketing commitment.
•  Countrywide, a leader in direct Web-based mortgage lending, is building a full suite of online customer service tools including account access, refi reminders, and personalized email alerts .