Category: Consumer Lending|MortgageUnited States

Mortgage Servicer Satisfaction Plateaus as Reputation Declines, JD Power Finds

2017-07-26

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COSTA MESA, Calif.: 27 July 2017 — Breaking a multiyear trend of steady improvements, mortgage servicer satisfaction has stalled in 2017, as customers have significant declines in their overall brand perceptions, according to the JD Power 2017 U.S. Primary Mortgage Servicer Satisfaction Study,^SM released today. The decline in brand perceptions is driven primarily by a significant increase in the number of customers indicating that their mortgage servicer is focused more on profit than on their customers, which could have long-term effects on future business.

The 2017 U.S. Primary Mortgage Servicer Satisfaction Study measures customer satisfaction with the mortgage servicing experience in six factors: new customer orientation; billing and payment process; escrow account administration; interaction; mortgage fees; and communications. Satisfaction is calculated on a 1,000-point scale.

“The past few years have not been easy for mortgage servicers as they’ve struggled with regulatory and market pressures, but still managed to deliver on customer satisfaction. Now, as that trend starts to shift and customer satisfaction levels off, it is critical that mortgage servicers continue to balance the demands of this tough marketplace with the needs of their customers,” said Craig Martin, senior director, mortgage practice at JD Power. “Based on our research, mortgage servicers have three very clear areas of opportunity to help drive success: effective onboarding, high-functioning self-service tools and call center best practices that optimize customer contact in step with changing customer demographics and needs.”

Following are key findings of the study:

• Onboarding as an opportunity: The first step in improving the servicing experience is ensuring effective onboarding. When onboarding satisfaction is high, customers are more likely to use the servicer’s website as their primary communications channel and submit payment via the web. They are less likely to have used a call center, experienced a problem, or paid their bill via check.
• Time is money: Among all mortgage customers, 10% say their time was wasted during their most recent interaction with their mortgage servicer. Overall satisfaction drops 285 points when customers believe their time is being wasted. Among those who believe their time is wasted, 66% indicate waiting 5 minutes or more to speak with a customer service representative.
• Digital becomes key to effective customer contact: The average satisfaction among those who do not use the website is 43 points lower than among those who visited their servicer’s website in the last 12 months. Satisfaction among customers visiting three or more times in the last 12 months is 789 points, compared with the industry average of 754.
• Mobile satisfaction grows, but usage still lags: Mobile usage is associated with significantly higher satisfaction, compared with those who don’t use this channel (786 vs. 748, respectively), but mobile usage actually declines year over year (to 19% in 2017 from 22% in 2016).

Study Rankings

Quicken Loans is the top-ranked mortgage servicer for the fourth consecutive year, with a score of 840. Quicken Loans is followed by Regions Mortgage (819) and Huntington National Bank (795).

Showing notable improvements in this year’s study are Bank of America with a score of 767; Nationstar Mortgage with a score of 703; and Ditech Financial, with a score of 694. These firms had increases of 26, 29 and 37 points, respectively.

The 2017 U.S. Primary Mortgage Servicing Satisfaction Study is based on responses from 7,374 mortgage servicing customers, and was fielded in March–April 2017.

For more information about the 2017 U.S. Primary Mortgage Servicer Satisfaction Study, visit http://www.jdpower.com/resource/us-primary-mortgage-servicer-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

Mortgage Customer Satisfaction Increases as Lenders Adopt New Technology, Improve Efficiency

2015-11-11

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WESTLAKE VILLAGE, Calif.: 16 November 2015 — Overall mortgage customer satisfaction has increased this year as lenders have focused on developing functional digital channels and improving operational efficiency. Despite this overall increase in satisfaction, mortgage lenders are under increased pressure from new loan disclosure regulations that could increase the time it takes to get a home loan while also facing increased competition from non-traditional lenders, according to the JD Power 2015 U.S. Primary Mortgage Origination Satisfaction Study^SM released today.

The study measures customer satisfaction with the mortgage origination experience in six factors (listed in alphabetical order): application/approval process; interaction; loan closing; loan offerings; onboarding; and problem resolution. Satisfaction is calculated on a 1,000-point scale.

Overall customer satisfaction with mortgage origination averages 793 in 2015, an increase of 7 points from 2014. The increase in satisfaction is driven by a 22 point gain in the application and approval process factor, influenced by improved perceptions of the speed of the loan process. When loans close earlier than promised, satisfaction is significantly higher (866), compared to when loans close as expected (821) and when it takes longer than expected (658).

The study also finds that overall satisfaction with several mortgage application-related activities, such as completing an application (799), submitting documents (804) and receiving status updates (811) is markedly higher among customers who used digital communication channels versus those who communicated via mail and fax (753, 766, and 770, respectively).

The links between the perception of mortgage processing speed and efficiency and overall customer satisfaction are particularly noteworthy in light of new TRID (TILA RESPA Integrated Disclosure[1]), a.k.a. “know before you owe” regulation, which went into effect in October 2015. This law has the potential to increase the mortgage timeline which poses a significant challenge for lenders when serving home buyers across all generations, but could be particularly challenging when dealing with Millennials (ages 18-34) who are technically savvy, always connected to the Internet and noted as being capricious consumers.

“While a lot of effort has been placed on ensuring compliance with new regulations, it is imperative that lenders improve their education and communication about the impact of these changes or risk losing customers,” said Craig Martin, director of the mortgage practice at JD Power. “Effective communication remains one of the most important aspects of a satisfying mortgage experience, especially if the process is taking longer than it has historically. As the number of Millennial home buyers continues to rise, lenders must be ready to meet their expectations. This generation is highly digitally connected, so ongoing communication and transparency via the channels they prefer, particularly mobile, are vital.”

Following are some of the key findings in this year’s study:

• ŸCommunication Impacts Satisfaction: Communication throughout the loan process mitigates dissatisfaction with a longer timeline. When the loan process takes more than two months, satisfaction is 686. However, when an accurate time frame estimate and proactive updates are provided in that same scenario, satisfaction is 859.
• ŸMillennials Seek Guidance: With Millennials now accounting for the largest share of loan originations over the last two years[2], it is notable that nearly 4 in 10 (37%) millennial customers indicate that the origination process was not completely explained to them, and 58% indicate their options, terms and fees were not completely explained.
   
• ŸEffective Loan Representatives are Vital: Those loan reps who engage customers, build trust and ensure that borrowers understand each step of the process can mitigate the negative impact on satisfaction due to missing closing dates (764 missed date/effective representative vs. 511 missed date/ineffective representative).
   
• Loans are Closing Sooner: The percentage of applications and approvals that close earlier than promised has increased to 35% in 2015 from 31% in 2014.
   
• ŸSatisfying Experience Leads to Recommendations and Loyalty: Providing an outstanding mortgage origination experience can generate high levels of advocacy and retention. The study finds that 71% of highly satisfied customers (overall satisfaction scores of 900 or higher) say they “definitely will” recommend their lender, and 76% say they “definitely will” consider reusing the same lender for their next home purchase. In comparison, only 5% of dissatisfied customers (scores of 699 or less) say they “definitely will” recommend and 8% say they “definitely will” consider reusing the lender.

2015 U.S. Primary Mortgage Origination Satisfaction Rankings

Quicken Loans ranks highest in primary mortgage origination satisfaction for a sixth consecutive year, with a score of 850, an increase of 15 points from 2014. Quicken Loans performs particularly well in all six factors. Fifth Third Mortgage ranks second with a score of 812, followed by Bank of America and BB&T (Branch Banking & Trust Co.) in a tie at 811 each.

The 2015 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from 4,666 customers who originated a new mortgage or refinanced within the past 12 months. The study was fielded in two waves: February – March and July – August 2015.

For more information about the 2015 U.S. Primary Mortgage Origination Satisfaction Study, visit

http://www.jdpower.com/resource/us-primary-mortgage-origination-satisfaction-study

Media Relations Contacts

Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070; [email protected]

John Tews; Troy, Mich.; 248-680-6218; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

About McGraw Hill Financial www.mhfi.com 

Mortgage Servicers’ Focus on At-Risk Customers Negatively Impacts Mortgage Experience of Majority of Other Borrowers

2015-07-28

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WESTLAKE VILLAGE, Calif.: 30 July 2015—In an industry that is highly regulated to protect consumer interest, mortgage servicers are spending a disproportionate amount of time and resources on at-risk customers, compared with customers who are current with their payment, adversely impacting satisfaction for the majority of their customers, according to the JD Power 2015 U.S. Primary Mortgage Servicer Satisfaction Study^SM released today.

The study, which has been redesigned in 2015, measures customer satisfaction with the mortgage servicing experience in six factors: new customer orientation; billing and payment process; escrow account administration; interaction; mortgage fees; and communications. Satisfaction is calculated on a 1,000-point scale.

At-risk customers—those currently behind in their mortgage payments or concerned about keeping current during the next year—represent only 15 percent of the survey respondent pool. Despite being a relatively small percentage of the total population, this group has been a primary focus of such regulatory agencies as the Consumer Financial Protection Bureau (CFPB) and the Government Sponsored Enterprises—Fannie Mae and Freddie Mac (GSEs)—that own or guarantee the majority of conforming home loans. Mortgage servicers consider their primary “customers” to be the owner of the loan (i.e., GSEs and Investors) rather than the end borrower, who has limited power to decide which mortgage company services their loan. 

“Bank mortgage servicers’ desire to retain and expand the broader relationship with the borrower has driven some improvement in customer service,” said Craig Martin, director of the mortgage practice at JD Power. “Non-bank servicers have had less business incentive to improve the experience as their focus is on keeping borrowers paying their mortgage, not on delivering a better relationship. As non-bank servicers have gained an increasingly larger share of the market, they have tended to apply policies geared toward at-risk customers that are designed to avoid legal or regulatory actions.” 

As a result of this polarity, there is a disproportionate amount of time and resources spent on at-risk customers, which diverts efforts to help improve the experience for the majority of customers, such as website upgrades. Enhanced self-service capabilities can improve satisfaction and at the same time help reduce servicing costs. When customers are able to resolve an issue entirely on their servicer’s website, satisfaction is 765, compared with 650 when they are not able to completely resolve the matter online. 

Conversely, when customers aren’t able to resolve their issue completely via the website, 67 percent ultimately turn to a live agent to resolve the issue, which increases both the cost and the negative impact on satisfaction. An additional 14 percent of customers give up trying to resolve their issue with the company altogether, which might give them the impetus to turn to the CFPB or other regulatory agencies.    

“A lot of time and resources have been spent on the live representative interaction to help distressed borrowers. While improvement is needed, the majority of mortgage customers haven’t seen a lot of meaningful changes in their experience,” said Martin. “Mortgage servicers must ensure that all customers’ concerns receive the appropriate attention in customer experience management decisions. For example, the typical mortgage servicing customer prefers to interact online, so a high-quality self-service website experience should be a priority, but it is often an afterthought.”

Satisfaction with website interaction is 750, which is 86 points below the average score for website interaction in the JD Power 2015 U.S. Retail Banking Satisfaction Study^SM and 75 points below average in the JD Power 2014 U.S. Credit Card Satisfaction Study.^SM Quicken Loans, Inc. is an exception in the mortgage servicing industry with a website interaction satisfaction of 868.  More than one-fourth (26%) of mortgage customers indicate having had a sub-optimal self-service experience and having had to turn elsewhere for support, resulting in a 115-point decline in overall satisfaction.

2015 U.S. Primary Mortgage Servicer Satisfaction Rankings

Quicken Loans, Inc. ranks highest in primary mortgage servicer satisfaction for a second consecutive year, with a score of 834. Quicken Loans performs particularly well in all six factors. Citizens ranks second with a score of 768, followed by Capital One at 742.

KEY FINDINGS

• Overall customer satisfaction with mortgage servicers is 718.
• ŸProviding an outstanding mortgage servicing experience can generate high levels of advocacy and loyalty. The study finds that 85 percent of highly satisfied customers (overall satisfaction scores of 900 or higher) say they “definitely will” recommend their mortgage servicer and 74 percent say they “definitely will” reuse their servicing provider for their next home purchase.
• ŸAmong mortgage service customers who are highly satisfied, 14 percent are at-risk customers and 86 percent are customers who are current with their payment.
• ŸNearly half (46%) of all customers indicate their mortgage servicer is not the company they originated the loan with. Among customers who have been transferred, 22 percent have been transferred at least two times.
• ŸOverall satisfaction among customers who have been transferred is 66 index points lower than among those who have not been transferred (682 vs. 748, respectively). Satisfaction among customers who have been transferred more than once is 646, which is 102 points lower than among those who are still with the same servicer.

The 2015 U.S. Primary Mortgage Servicer Satisfaction Study is based on responses from 5,922 customers who have had a mortgage on their primary residence for at least one year. The study was fielded in March through April 2015.

Media Relations Contacts

Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070; [email protected]

John Tews; JD Power; Troy, Mich.; 248-680-6218; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 About McGraw Hill Financial www.mhfi.com 

Lenders Often Fall Short in Providing Advice and Guidance to First-Time Homebuyers

2014-11-11

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WESTLAKE VILLAGE, Calif.: 13 November 2014 — First-time home buyers report challenges with understanding the mortgage process and the options that are available to them, according to the JD Power 2014 U.S. Primary Mortgage Origination Satisfaction Study^SM released today.

The study, which has been redesigned in 2014, measures customer satisfaction with the mortgage origination experience in six factors: loan offerings; application/approval process; interaction; closing; onboarding; and problem resolution.  

Among survey respondents purchasing a home, 58 percent are first-time home buyers. Lack of experience among these customers and uncertainty about the process may influence how they first inquire about a mortgage, with 48 percent heading to a lender’s local office to meet with a loan representative in person and receive personalized advice.

“Recent National Association of Realtors data indicates the percentage of first-time home buyers is well below historical norms. With many prospective borrowers looking for guidance and reassurance, it is imperative that lenders are fully prepared to provide the detail and information these customers desire or the borrowers may decide to stay on the sidelines,” said Craig Martin, director of the mortgage practice at JD Power. “The loan representative is the face of the organization for most borrowers and is relied upon to provide effective explanations, set accurate expectations and ensure consumers have confidence that they are making a good decision.”

KEY FINDINGS

• ŸOverall customer satisfaction with the mortgage origination process averages 786 (on a 1,000-point scale) in 2014.
• ŸCustomers want a transparent mortgage process. More than one-third (35%) of all mortgage customers—and 43 percent of first-time home buyers—indicate they do not completely understand the process, resulting in an average decline of 179 points in overall satisfaction.
• ŸThe majority (54%) of first-time home buyers indicate they don’t fully understand the different loan options available to them. Only 41 percent of first-time buyers and 56 percent of experienced mortgage customers indicate their representative completely explained the types of loans, terms, special programs, fees and options to reduce their down payment.
• ŸConsistent communication is another important part of a good borrowing experience.  Satisfaction falls by 236 points when loan representatives fail to call customers back as promised.
• ŸThe closing experience is often confusing for customers. Among first-time home buyers, 44 percent indicate that the closing agent didn’t completely explain all of the closing documents vs. 26 percent of experienced customers. Overall satisfaction declines by an average of 144 points when lenders fail to effectively communicate loan documents and terms. 

While many mortgage customers obtain information and updates online and by using mobile devices, the study shows that the loan representative is still a key part of the equation. Interestingly, some of the most important things lenders can do to deliver a great experience remain heavily reliant on human interaction.

“From describing what will happen during the process in terms a customer can understand to explaining the benefits of different options, the loan representative sets the tone of the experience,” said Martin. “A potential challenge with first-time homebuyers is that they may be afraid to appear uninformed, so they won’t admit when they are confused or don’t understand something.  For a lender to truly stand out, their staff must foster relationships that promote open and honest communication.”

2014 U.S. Primary Mortgage Origination Satisfaction Rankings

Quicken Loans ranks highest in primary mortgage origination satisfaction for a fifth consecutive year, with a score of 835. Quicken Loans performs particularly well in all six factors. Bank of America ranks second with a score of 807, followed by Chase at 805. USAA achieves a score of 824, but is not award-eligible because it is a mortgage provider open only to U.S. military personnel and their families.

The 2014 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from 3,893 customers who originated a new mortgage or refinanced within the past 12 months. The study was fielded in July through September 2014.

Media Relations Contacts

Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070; [email protected]

Anthony Popiel; Brandware Public Relations; Atlanta, Ga.; 770-649-0880; [email protected]

John Tews; Troy, Mich.; 248-680-6218; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

About McGraw Hill Financial www.mhfi.com 

2011-08-01

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Amid Continuing Credit Scarcity, Customer Satisfaction with the Mortgage Origination Process Increases from 2010

2011-11-17

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WESTLAKE VILLAGE, Calif.: 17 November 2011 — Overall customer satisfaction with primary mortgage lenders has increased considerably from 2010, according to the JD Power and Associates 2011 U.S. Primary Mortgage Origination Satisfaction Study^SM released today.

The study measures customer satisfaction in four key factors of the mortgage origination experience: application/approval process; loan representative; closing; and contact. Customer satisfaction in 2011 averages 747 on a 1,000-point scale, up 13 points from 2010.

“The increase in customer satisfaction is driven by improvements in many of the key best practices, including proactive status updates, providing a time frame to expect and meeting it, and providing follow-up contact after the application is submitted,” said David Lo, director of financial services at JD Power and Associates.

According to Lo, this increase in satisfaction is in stark contrast to the mortgage servicing industry, in which homeowner satisfaction has declined significantly from 2010.

“The reality today is that it’s a lot harder to get credit than it was a few years ago,” said Lo. “Many homeowners are stuck in their current mortgage and are unable to refinance due to credit or equity challenges, and they’re not happy about it–thus the drop in satisfaction for mortgage servicing. But on the mortgage origination side, among customers who are able to get credit, lenders are taking the extra steps needed to please their customers, and it shows.”

Quicken Loans ranks highest among primary mortgage lenders for a second consecutive year with a score of 818, and performs particularly well in the application/approval process and closing factors. SunTrust Mortgage follows in the rankings with a score of 791, performing particularly well in the loan representative and closing factors. ING Bank ranks third with a score of 789.

The study finds that lenders that have improved in customer satisfaction tend to experience increases in market share. Among the lenders that have experienced a substantial increase in overall mortgage origination satisfaction since 2009, overall satisfaction improved an average of 35 index points, and their collective market share has increased by nearly 5 percent. In contrast, among brands that have declined substantially in satisfaction from 2009 to 2011, satisfaction has dropped 25 index points, and their collective market share declined by nearly 5 percent.

“In this current environment, the perception among some is that what’s good for the customer isn’t necessarily good for the lender,” said Lo. “However, we see a clear relationship between a lender’s ability to deliver a superior customer experience and the relative impact on higher loyalty, retention and advocacy.”

Lo offers the following tips for consumers when selecting and working with a mortgage lender:

• Make your preferences for contact known–i.e., if you only want to be reached via email, let your representative know.


• Expect the process to take longer than it did a few years ago. The average time frame is currently 50 days, so keep that in mind when beginning the process.


• Ask for status updates and timeline estimates to give you a better idea of how long the process will take.


• Research and understand the different types of loans available, and realize that you should be shopping for more than just the interest rate.


• Understand the difference between the interest rate and the APR.


• Certain institutions may waive fees for current customers, so look into the mortgage options at your current banking or investment firms.


• Ask for the closing documents prior to the loan closing and have your representative thoroughly explain them.

The 2011 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from more than 3,600 customers who originated new mortgages. The study was fielded between July and September 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:
John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Bonnie Berkes; Brandware Public Relations; Atlanta, Ga.; (770) 649-0880; [email protected]

Follow us on Twitter: @JDPower

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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Amid Record-Low Interest Rates and Improved Loan Modification Programs, Customer Satisfaction Increases

1970-01-01

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WESTLAKE VILLAGE, Calif.: 19 July 2012 — Historically low interest rates, combined with proprietary and government loan modification programs, have helped reduce the number of homeowners in distress, according to the JD Power and Associates 2012 U.S. Primary Mortgage Servicer Satisfaction Study^SM released today.

According to the study, 7 percent of homeowners indicate their loan status is “current” as a direct result of a loan modification or other payment arrangement, compared with 4 percent in 2011. In addition, 15 percent of customers say they have concerns keeping mortgage payments current, down from 17 percent in 2011.

“Over the past few years, among the primary reasons for lower levels of satisfaction were challenges in addressing the needs of customers concerned about making their payment or who were already delinquent,” said Craig Martin, director of the mortgage practice at JD Power and Associates. “Significant improvements in mortgage servicing, particularly with the method in which calls are handled, have improved customer satisfaction for the first time in three years.”

Overall satisfaction with primary mortgage servicers has increased to 725 (on a 1,000-point scale) from 718 in 2011. The study measures customer satisfaction in four areas of the mortgage servicing experience: billing and payment process; escrow account administration; website; and phone contact.  Satisfaction in all factors has increased from 2011.

Overall satisfaction among at-risk customers, those who are behind on their mortgage payments or are concerned about making future payments, improves the most, increasing by 27 points from 2011, compared with non-prime and prime customers (+3 point and -3 points, respectively). At-risk customers are the most likely to contact their mortgage servicer (75%), compared with non-prime (41%) and prime (32%) customers. Satisfaction among customers who contact their servicer via phone increases by 52 points from 2011.

“In the past, satisfaction is typically higher when customers do not need to contact their servicer, which makes the increase in overall satisfaction among at-risk customers that much more impressive,” said Martin. “By focusing on improving the contact experience, servicers have been able to improve satisfaction among customers who are most likely to be dissatisfied.”

The Consumer Financial Protection Bureau (CFPB) is proposing new mortgage servicing rules that, if passed, will go into effect in early 2013. Once in place, mortgage servicers will face new challenges in providing high levels of service, while ensuring the proper processes and procedures are in place to meet the new guidelines.  

“Servicers will be under pressure to comply with the guidelines and must ensure that they not only have appropriate processes in place, but that they also understand the new rules and adhere to them as well,” said Martin.    

BB&T (Branch Banking & Trust) ranks highest in customer satisfaction among primary mortgage servicers for a third consecutive year, with a score of 803, a 35-point increase from 2011. BB&T achieves the highest scores in three factors: website; escrow account administration; and billing and payment process. Regions Mortgage follows in the rankings with a score of 779, while SunTrust Mortgage ranks third with 758.

Consumer Tips

Consumers also play a role in creating a better experience with their mortgage servicer. JD Power offers the following tips, based on study findings, to help customers avoid instances that may negatively affect their mortgage servicing experience.

• If you tried to refinance your mortgage in the previous 6-12 months and didn’t qualify, consider trying again. New government programs have recently been implemented to assist current mortgage customers, making it easier to modify or refinance. For more information on government programs designed to assist mortgage customers, such as HAMP and HARP, visit www.makinghomeaffordable.gov.
• Make sure you’re familiar with your mortgage servicer’s payment options, terms and policies, specifically regarding late payments, in order to help keep your account in good standing and avoid going into delinquent status.
• Avoid paying your bill on the last day of your grace period, as sometimes these payments don’t post to your account right away, which may result in fees or other late payment penalties. Consider receiving your bill and paying your mortgage online and taking advantage of all the services and information that your mortgage servicer provides on their website.
• Understand that it is also in the mortgage servicer’s best interest to keep your account in good standing. If you currently have a delinquent mortgage, be proactive and talk to your servicer about working out a payment plan that will work for both parties.

The 2012 U.S. Primary Mortgage Servicer Satisfaction Study is based on responses from 5,623 customers  regarding their experiences with their primary mortgage servicer and was fielded between April and May 2012.

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

Follow us on Twitter: @JDPower

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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Communication and Transparency Drive Higher Mortgage Origination Satisfaction

1970-01-01

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WESTLAKE VILLAGE, Calif.: 15 November 2012 — Overall customer satisfaction with mortgage lenders has reached its highest level in the past six years, according to the JD Power and Associates 2012 U.S. Primary Mortgage Origination Satisfaction Study^SM released today.

For a second consecutive year, overall customer satisfaction has increased to 761 (on a 1,000-point scale) in 2012 from 747 in 2011 and 734 in 2010.  

This increase in customer satisfaction is driven by steady improvements related to transparency and communication. The study finds that during the past three years, lenders have improved in the areas of clearly explaining loan options and ensuring customers understand them; following up with customers in a timely manner after they complete their application; and proactively updating customers on the status of their application.

“Given the recent challenges across financial services, the highest-performing lenders in the 2012 study have reduced customer uncertainty and apprehension with greater transparency and communication regarding what to expect in the origination process,” said Craig Martin, director of the mortgage practice at JD Power and Associates. “This increase in satisfaction is particularly impressive given the increasingly expanded origination timelines during the past year.”

Further, there is a strong relationship between satisfaction with the origination process and the rates of customer consideration and usage of the same lender for refinancing. Among loan customers who have refinanced in 2012, only 40 percent cite price as their main reason for selecting their lender. Other reasons commonly cited for selection include an existing relationship; previously being a customer; and referrals.  

“On the surface, most would assume that the interest rate is the primary factor in the decision-making process. However, lenders that enjoy high levels of repeat business are those that typically deliver high levels of satisfaction and don’t necessarily offer the lowest rates,” said Martin. “From the perspective of customers, peace of mind in the loan origination process is critically important, and selecting a lender with a slightly higher rate, but that provides superior customer service, may be worth the few extra dollars in their monthly payment.”

The study measures customer satisfaction in four key factors of the mortgage origination experience: application/approval process; loan representative; closing; and contact.

Quicken Loans ranks highest among primary mortgage lenders for a third consecutive year, with a score of 817, and performs particularly well in all four factors measured in the study. BB&T (Branch Banking & Trust Co.) follows in the rankings with a score of 791, while U.S. Bank ranks third with a score of 784.

JD Power and Associates offers the following tips for consumers when selecting and working with a mortgage lender:

• Research and understand the different types of loans available, and be sure to consider more than just the interest rate while shopping.
• Expect the mortgage origination process to take longer than it did a few years ago as a result of increased regulations and scrutiny.
• Some lenders offer special website access or mobile apps that enable you to keep up to date on the status of your application or manage your account. Ask your loan representative whether these options are available for your account.
• Make sure you fully understand the relationship you’ll have with the lender you select. The mortgage origination company with whom you apply for your loan may not be the same company that ultimately services your loan.
• Inform your loan representative how you prefer to be contacted–e.g., via email, phone or mobile.

The 2012 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from more than 3,500 customers who originated a new mortgage. The study was fielded between July 31 and August 27, 2012.

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:

Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected] 

Follow us on Twitter: @JDPower

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

Customer Satisfaction Improves as Primary Mortgage Servicers Strive to Comply with New Regulations

2013-07-18

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WESTLAKE VILLAGE, Calif.: 18 July 2013 — New business practices instituted in the wake of nationwide reforms appear to be contributing to the increase in overall customer satisfaction with primary mortgage servicers, according to the JD Power 2013 U.S. Primary Mortgage Servicer Satisfaction Study^SM released today.

The study measures satisfaction in four factors of the mortgage servicing experience: billing and payment process; escrow account administration; website; and phone contact. Overall satisfaction with primary mortgage servicers has increased to 733 (on a 1,000-point scale) from 725 in 2012. 

Overall satisfaction substantially increases year over year, as performance at large national servicers improves. However, overall satisfaction with some smaller national servicers that have performed well-above average in previous studies has shifted toward the industry average. This leveling off is potentially the result of an increase in new clients combined with a new set of rules released by the Consumer Financial Protection Bureau (CFPB)—effective January 2014—which has had many firms focused on ensuring their policies and procedures are fully compliant.

One of the overarching concerns covered by the CFPB addresses general servicing policies and procedures. Under these new rules, servicers are required to have systems, policies and procedures in place to ensure customers receive the appropriate information and support from servicers. “This study helps gauge the effectiveness of firms’ servicing capabilities from the customer’s perspective,” said Craig Martin,director of the financial services practice at JD Power. “The fact that satisfaction continues to increase seems to indicate that changes being made in response to these new regulations are having a positive impact on the experience of customers.”

Reforms have also emerged from the National Mortgage Settlement, an agreement reached in February 2012 between 49 state attorneys general and the country’s largest mortgage servicers, which include Bank of America; CitiMortgage; J.P. Morgan Chase; and Wells Fargo. The settlement requires these firms to make several changes to the way they service policies, including adequately training staff; ending improper fees and dual tracking; maintaining better communication; and appointing a single point of contact for loss mitigation efforts.

Without a single point of contact, customers in a distressed credit situation may receive mixed messages and become confused, especially concerning loan modifications and foreclosures. Funneling all customer communications through one mortgage representative may help ensure consistency and clarity, thereby creating a more satisfying customer experience. Overall satisfaction among customers who indicate they had a single point of contact is 154 index points higher than among those who indicate they worked with multiple representatives. Servicers may also benefit by reducing the extra staffing required to respond to the additional demands created by customers making multiple contacts regarding the same topic. 

“For now, these five servicers are the only ones required to abide by the terms of the settlement, but the fact that they are also posting large increases in customer satisfaction scores is telling,” said Martin. “The new policies governing communication, particularly the appointment of a single point of contact, might easily become the de facto standard for problem resolution across all mortgage servicers in the near future.”

The importance of improving communication is readily apparent in escrow account administration, as reflected in the 21-point increase in satisfaction from 2012—the largest increase among the four study factors. Escrow payments are among the most difficult aspects for customers to understand, making straightforward communication critical. Year-over-year satisfaction ratings have increased for all three attributes that comprise the escrow account administration factor: management of escrow payments; effectiveness of communication; and ease of understanding how the escrow payment applies to the loan.

“We have seen an increase in the use of escrow analysis guides, which are very helpful in explaining how the escrow process works. While there isn’t a silver bullet, mortgage servicers that focus on the Voice of the Customer and improve communication by being more proactive and using various methods to provide information to borrowers appear to be reaping the benefits through higher levels of satisfaction,” said Martin.

BB&T Ranks Highest in Customer Satisfaction for a Fourth Consecutive Year

Consumer Tips

• Be an educated consumer. Those who are most aware of their options and rights are the most satisfied customers, according to the study.
• Request a single point of contact. This is especially important in distressed credit situations where multiple conversations may be necessary and having to work with multiple representatives may result in miscommunication or misunderstanding.
• Understand alternative payment options. For instance, many firms offer the option of making more than one monthly payment or paying more toward the loan balance ahead of schedule. While you will have to pay more frequently, you will ultimately pay less over the lifetime of the loan.

The 2013 U.S. Primary Mortgage Servicer Satisfaction Study is based on responses from 4,669 customers  regarding their experiences with their primary mortgage servicer and was fielded between April 17, 2013 through May 8, 2013.

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

About McGraw Hill Financial

McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

Media Relations Contacts:

Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]

John Tews; Troy, Mich.; (248) 680-6218; [email protected] 

Follow us on Twitter: @JDPower

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate

Customer Satisfaction with Mortgage Origination Lenders Reaches Seven-Year High, While Gap in Satisfaction between Home Buyers and Refinancers Narrows

2013-11-14

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WESTLAKE VILLAGE, Calif.: 14 November 2013 — Overall customer satisfaction with mortgage lenders reaches a seven-year high, with satisfaction among first-time home buyers improving considerably from 2012, according to the JD Power 2013 U.S. Primary Mortgage Origination Satisfaction Study^SM released today. 

Overall customer satisfaction improves for a third consecutive year, averaging 771 (on a 1,000-point scale) in 2013, up from 761 in 2012 and 747 in 2011. The study measures customer satisfaction in four key factors of the mortgage origination experience (in order of importance): application/approval process; loan representative; closing; and contact.

KEY FINDINGS

• Overall satisfaction is lower among home buyers than among home owners who refinance (765 vs. 775, respectively), in part due to refinance customers’ familiarity with the process.
• Overall satisfaction among first-time home buyers is 772, compared with 757 among repeat buyers.
• Despite improvements, customers purchasing a home, particularly first-time home buyers, continue to experience difficulties understanding the loan options available to them. In the 2013 study, 61 percent of first-time home buyers indicate that their loan representative clearly explained their options and that these options were completely understood, compared with 74 percent of repeat home buyers and 81 percent of refinancing customers.
• The use of electronic closing documents improves customer closing satisfaction. Closing satisfaction among the 8 percent of customers who closed their mortgage using electronic documents in person averages 830, while satisfaction among the 84 percent of those who closed with paper documents in person is 772.
• The incidence of incurring additional fees at closing is higher among first-time home buyers (17%) than among repeat buyers (8%) and refinancing customers (7%).

“As refinancing volumes are on the decline, consumers contemplating purchasing a home are likely to have multiple lenders competing for their business. This can be particularly beneficial for those who are first-time home buyers,” said Craig Martin, director of the financial services practice at JD Power. “First-time buyers often have questions and should not be afraid to ask prospective lenders about the specifics of the mortgage process and how they will be kept informed. Much of the stress with borrowing comes from a lack of information and knowledge during the process. Asking when you will be updated and how that information will be provided are two key questions that may help improve the borrowing experience.” 

According to Martin, customers purchasing a home, especially for the first time, have special needs and priorities that influence their level of satisfaction. Individual mortgage firms that are able to effectively deliver on these priorities may be able to distinguish themselves from the competition.

Rankings:

Quicken Loans ranks highest (841) among primary mortgage lenders and performs well across all factors. BB&T (Branch Banking & Trust Co.) ranks second (798), also performing well across all factors. U.S. Bank ranks third (783) and performs particularly well in the application/approval process (756) and loan representative (810) factors.  

The 2013 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from 3,267 customers who originated a new mortgage or refinanced within the past 12 months. The study was fielded between July 30 and August 30, 2013.

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw Hill Financial.

About McGraw Hill Financial

McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com

Media Relations Contacts

Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-598-1115; [email protected]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com 

Follow us on Twitter @jdpower