What lures consumers most is the speed of online transactions. The introduction of online product selection tools for matching consumer profiles with loan programs and prices has refined the online mortgage process. In addition, automated loan decision systems add speed and transparency to the e-lending process. As revealed by the report compiled by a Boston based financial services group, 56% of US banks and 70% of credit unions in the country have developed automated loan origination systems for offering better services to their customers.

With the online mortgage market in progress, it's easier to apply quickly at any time of the day from home itself. Consumers can have a quick check at their credit scores which can be retrieved online along with appraisal and title insurance reports. And, while the loan is being processed, there are emails and secure web pages updating them with the status of their loan approval.

Says, Mr. Kevin Cuff, Executive Director of the Massachusetts Mortgage Bankers Association, "Consumers today are very much comfortable with the Internet - and the mortgage market, with many having gone through the mortgage and refinancing process more than once. They don't feel the need to initiate discussion in person or even over the telephone."

Online processing brings down the number of individuals involved in a traditional loan process thereby minimizing the time as well as money for both parties in the transaction. Online lenders implement multiple initiatives like attractive rates and flexible payment options and offer a platform for easy loan comparison and analysis. However, lack of security in online transactions is still a matter of concern for the industry.

There are companies selling and reselling consumer information in return of huge cash amount. It's a chain of ongoing selling from one company that uses it, sells it to another company who resells after using it. This is accompanied by ongoing phone calls and solicitations followed by increasing number of identity theft cases. Moreover, there isn't any scope for complaints, as e-lending isn't regulated by the government.

Another risk associated with online mortgages, is about consumers getting unsolicited offers to transfer their mortgages to an online company for an early payoff of their loans. Despite the negatives, the online mortgage market seems to be in good prospects. While it offers online companies a competitive edge over traditional lenders, customers realize that the best way to achieve value for time and money is to apply online.