Survey: Mortgage Lenders Miss Opportunities to Build Trust

JD Power warns that the mortgage customer experience is becoming increasingly commoditized.

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As mortgage lenders embrace technology to automate processes and reduce costs, the risk of losing the opportunity to be seen as a trusted advisor is a new consumer experience as the customer experience becomes increasingly commoditized. suggested in a survey of

JD Power 2022 U.S. Mortgage Arrangement Satisfaction Surveyreleased Thursday, found that just 28% of lenders met all of the key criteria identified by a consumer research firm as necessary to be seen as trusted advisors.

“The average mortgage customer experience has become increasingly commoditized, and few lenders have found the right formula for building long-term trust and loyalty that sets them apart from their competitors,” said JD Power. said in announcing the survey results.

According to JD Power, six “critical moments” determine whether a lender is considered a trusted advisor:

  • Advice on your financial situation
  • Explanation of the application flow
  • Complete answers to application-related questions
  • Meet expectations for what is required
  • Explanation of the closing flow
  • Providing information about services

JD Power found that less than half (48%) of nearly 6,000 recent mortgage customers surveyed in June and August said they were well informed at all stages of the process. I found no.

While 40% of mortgage customers said they would use self-service digital tools to complete the entire loan process, 67% said they have interacted with a human representative over the phone.

Mortgage interest rates are the biggest reason for choosing a particular lender, JD Power said. This suggests that lenders may be placing too much emphasis on price, and may reinforce consumer perceptions that non-commodity lenders make little difference.

Tom Lawler

“With record high demand and historically low interest rates, there are many challenges lenders face in developing more meaningful and lasting relationships with their customers and moving beyond transactional and interest rate driven relationships. was hidden,” said Tom Lawler, head of consumer affairs. Lending Information at JD Power statement“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.”

JD Power 2022 U.S. Mortgage Origination Satisfaction Study

Overall Customer Satisfaction Ranking 1,000 points | JD Power

Formerly known as the U.S. Primary Mortgage Origination Satisfaction Survey, the JD Power annual survey of mortgage originators has been redesigned for 2022.

In June and August, JD Power surveyed 5,915 customers who had taken out a new mortgage or refinanced within the past 12 months to determine an overall customer score based on six factors. measured satisfaction. Doing business with people.

The top five lenders on the 1,000 point scale for overall customer satisfaction were Rocket Mortgage (750), Chase (736), Citi (733), Fairway Independent (733) and PNC (732).

Also above the industry average of 716 were Ally (731), Bank of America (731), Guaranteed Rates (731), Guild Mortgage (731), Fifth Third Bank (727), Loan Depot (722) and Caliber Home. It was a loan (718). ) and Trust (718).

The five lenders with the lowest scores were Freedom Mortgage (663), AmeriSave Mortgage (674), Mr. Cooper (678), CrossCountry Mortgage (680), and US Bank (685). PennyMac (687), Better Mortgage (692) and Citizens (710) also underperformed industry averages.

Wells Fargo’s score of 716 matches the industry average.

USAA (797), Veterans United (768) and Navy Federal Credit Union (760) were above industry averages but were not ranked because they did not meet the research award criteria, JD Power said.

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