Mortgage lenders struggle to stand out as demand plummets, interest rates soar, finds JD Power

TROY, Mich., USA–(BUSINESS WIRE)–November 10, 2022–

What a difference in a year! The U.S. mortgage industry has seen demand for new mortgages drop from record highs and profits in 2021 to his lowest level in 22 years by early 2022. Expectations for the experience have risen, Percentage of customers whose business is becoming more competitive. According to J.D. Power’s 2022 U.S. Mortgage Origination Satisfaction Survey, released today,℠, the average mortgage customer experience is becoming increasingly commoditized, with long-term trust and loyalty standing out from the competition. Few lenders have found a suitable way to build tee.

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JD Power 2022 U.S. Mortgage Origination Satisfaction Study (Graphic: Business Wire)

“There is no denying the impact of rising interest rates on mortgage demand. Now is the time for lenders to differentiate themselves as trusted advisors who can guide customers through the lending process and provide valuable advice along the way.” when there is Craig Martin, Executive Managing Director and Global Head of Wealth and Lending Intelligence at JD Power, said:“This means stepping up communication – keeping customers informed throughout the loan process and ensuring consistent and effective communication across all channels. Fewer than 1 in 3 customers said they had the best experience possible.”

Below are the key findings from the 2022 study.

  • Commoditized customer experience: Only 87 points (on a 1,000 point scale) separate the top and bottom lenders in overall satisfaction in this year’s survey, and there is little difference in overall satisfaction among the top 10 rated lenders. Additionally, interest rates are the number one reason for choosing a particular lender. This suggests that lenders may be placing too much emphasis on price, and supports the notion that there are few non-product differences.
  • Missed Opportunity: A key attribute that customers look for in a mortgage lender is expertise. guidance; and communication. These are communicated in a responsive manner, keep customers informed, have an effective website and provide consistent communication throughout the loan process. Only 28% of lenders are
  • Less than half of mortgage customers provided sufficient information. During the loan process, there are six critical moments that determine whether a lender is considered a trusted advisor. Describe the application process; fully answer application-related questions; Meet expectations for what you need. Describe the closing process; provide information about the service; Less than half (48%) of mortgage customers said they were well informed at all stages of the process.
  • In favor of digital, but humans are still involved in most interactions: While nearly 40% of mortgage customers indicate they are willing to complete the entire loan process via self-service digital tools, 67% currently interact with human agents via phone. I’m here.

“Record high demand and historically low interest rates are the many challenges lenders are facing in building more meaningful and lasting relationships with their customers and moving beyond transactional and interest rate driven relationships. was hiding Tom Lawler, Head of Consumer Financial Intelligence at JD Power“Now that the macroeconomic landscape has reversed, these relationship-driven attributes have become important for lenders who want to communicate a more unique value proposition and build more lifetime customers in a competitive marketplace.”

Survey ranking

rocket mortgage It ranked highest in mortgage origination satisfaction with a score of 750. tracking (736) is second, city (733) and fairway independence (733) tied for 3rd place in each rank.

The US Mortgage Origination Satisfaction Survey, formerly known as the US Primary Mortgage Origination Satisfaction Survey, has been redesigned for 2022. digital channels; level of trust; and loan offerings meet my needs. Made trading easy. and people. The survey, which he conducted from June to August 2022, is based on responses from his 5,915 customers who took out a new mortgage or refinanced within the last 12 months.

For more information on the US Mortgage Origination Satisfaction Survey, please visit:

https://www.jdpower.com/business/financial-services/us-mortgage-origination-satisfaction-study.

See the online press release below. http://www.jdpower.com/pr-id/2022162.

About JD Power

JD Power is a global leader in consumer insights, advisory services, data and analytics. JD Power is a pioneer in using big data, artificial intelligence (AI), and algorithmic modeling capabilities to understand consumer behavior, with over 50 years of sharp industry intelligence on how customers interact with brands and products. has provided World-leading companies in major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. For more information on what the company does, please visit his website at: JDPower.com/businessThe JD Power Auto Shopping Tool can be found at: http://www.jdpower.com. JDPower.com.

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

1https://www.cnbc.com/2022/06/08/mortgage-demand-falls-to-the-lowest-level-in-22-years.html

View source version businesswire.com:https://www.businesswire.com/news/home/20221110005212/en/

Contact: Geno Effler, JD Power; West Coast; 714-621-6224;media.relations@jdpa.com

John Roderick; East Coast; 631-584-2200; john@jroderick.com

Keywords: Michigan United States North America

Industry Keywords: Technology Personal Finance Construction and Real Estate Finance Banking Professional Services Data Analytics Artificial Intelligence Housing and Real Estate

Source: JD Power

Copyright Business Wire 2022.

PUB: November 10, 2022 08:00 AM/DISC: November 10, 2022 08:02 AM

Copyright Business Wire 2022.

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