How to Identify the Silent Mortgage Shopper

Credit union members may be shopping around and comparing mortgage options behind the scenes. These “silent mortgage shoppers” may be evaluating different lenders, rates, and loan options without telling their loan officer.

“They’re difficult to identify because today’s consumers can easily research and receive quotes from multiple lenders online whenever they’d like,” says Erin Hermany, SVP of consumer lending at Members 1st Federal Credit Union.

However, recognizing that silent mortgage shoppers exist can help you spot potential signs of comparison shopping and respond before a member takes their mortgage business to another credit union, bank, or online lender.

Why members quietly compare mortgages

In most cases, members aren’t being deceitful by comparing their options. They’re simply protecting themselves. Many of them view shopping around as a normal part of the mortgage process and do not feel obligated to disclose it.

Others may worry about being pressured to stay with a lender or not receiving the best terms. Some may simply want the freedom to compare options independently.

Additionally, shopping around silently might help them avoid sales pitches or cold shoulders, both of which they may have dealt with in the past.

Keeping their lips sealed may seem like the best way to gather information and compare their options without feeling pressured to make a decision.

Early signs of silent mortgage shoppers

So, how do you know a member is shopping around for a mortgage without telling you? Although there’s no way to know for sure, all member-facing employees, including member service representatives (MSRs) and contact center staff, should watch for telltale signs.

This type of member is likely very focused on rates and fees. They may ask for multiple pricing updates and delay submitting any documents you request from them. In many cases, their communication is also inconsistent and their questions become more detailed as they evaluate their options.

In addition, they might mention a large transfer, plans to move or a life event such as marriage, divorce, having a child, a death in the family or becoming an empty nester. Even a conversation about getting a dog could signal changing household needs and an opportunity to ask whether the member anticipates any major financial decisions, including buying a home.

When employees hear these cues, they can bring a loan officer into the conversation to explore whether the member needs mortgage guidance. This proactive approach can help credit unions identify potential mortgage needs before members start looking elsewhere.

Reasons a member may choose another lender (and what credit unions can do)

Rates and fees are important to most members but they’re not everything. Members often switch lenders because of faster closing timelines, better communication, a more convenient digital experience, or greater confidence in the loan officer.

“The decision is usually driven by the overall experience, not price alone,” explains Hermany.

The good news is there are ways credit unions can differentiate themselves when competing against other financial institutions.

“Credit unions win by combining competitive pricing with personalized service, local expertise and a member-first approach,” Hermany says.

In addition, it’s important to rethink the structure of institutional incentives. Rather than setting separate goals for auto loan production, mortgage originations and certificates of deposit (CDs), tie incentives to broader household growth. For example, you may want to reward teams for increasing the number of members who use three or more products across the credit union.

Individual product goals can still play a role, but linking them to a shared growth target encourages employees to look beyond their own departments and identify other ways to help members. It also gives member-facing staff a stronger incentive to listen for life changes and connect members with the right specialists, including mortgage loan officers.

Members can often find similar rates elsewhere, but trusted guidance, proactive communication and a seamless experience from application through closing can give them more reasons to stay with their credit union.

The information reported in this document, financial and otherwise, should not be construed as either legal or investment advice, nor does it represent the views of ACUMA, its Board of Directors, its staff or its members. The author presents information current at the time of publication and is designed to educate ACUMA members and others interested in the credit union mortgage lending industry.