Mortgage Lender Satisfaction on the Rise Thanks to Transparency in Origination Process
Overall customer satisfaction with
mortgage lenders reached a six-year high in the J.D.
Power and Associates 2012 U.S. Primary Mortgage Origination Satisfaction StudySM
released today, rising from 747 on a 1,000 point scale last year to 761 this
year. It was the second straight year
that the average increased and of the 15 companies rated, five scored above
that average and nine below.
The 2012 U.S. Primary Mortgage
Origination Satisfaction Study is based on responses from more than 3,500
customers with a recent new mortgage. The study was fielded between July 31 and
August 27, 2012.
Quicken Loans led the list with 817
points while Bank of America was at the bottom in customer satisfaction with
The company said the 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 J.D. Powers. "This increase in satisfaction is particularly
impressive given the increasingly expanded origination timelines during the
The company said 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
Overall satisfaction with a lender
was based on customer satisfaction on a scale of one to five in four key areas
of mortgage origination; the application and approval process, the loan representative,
closing, and contact. A score of three
indicated customers considered the lender "average." Quicken scored five ("among the best") on all
four measures while BB&T received a four ranking ("better than most") on
each. This is the third consecutive year
that Quicken Loans has ranked highest among primary mortgage lenders.
J.D. 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.
Ask whether technology solutions
such as special website access or mobile apps are available to help you track
the progress of our application.
Understand the relationship you'll
have with the lender you select and whether it will ultimately service your
Inform your loan representative how
you prefer to be contacted-e.g., via email, phone or mobile.