2012 U.S. Primary Mortgage Origination Satisfaction Study Results
Overall customer satisfaction with mortgage lenders has reached its highest level in the past 6 years, according to the recently released J.D. Power and Associates 2012 U.S. Primary Mortgage Origination Satisfaction Study.SM Overall customer satisfaction is 761 (on a 1,000-point scale) this year, an increase from 747 in 2011 and 734 in 2010.
"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. Power and Associates. "This increase in satisfaction is particularly impressive given the increasingly expanded origination timelines during the past year."
The study finds that steady improvements related to transparency and communication are driving much of the increase in customer satisfaction. During the past 3 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.
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 refinanced in 2012, only 40% cite price as their main reason for selecting their lender. Other reasons commonly cited 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," Martin said. "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. 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 2012 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from more than 3,500 customers who originated a new mortgage. Fielded between July 31 and August 27, 2012, the study measures customer satisfaction in four factors: application/approval process; loan representative; closing; and contact.
Quicken Loans ranks highest among primary mortgage lenders for the third consecutive year, with a score of 817, and performs particularly well in all four factors. 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.
Consumer Tips: How to Select and Work with a Mortgage Lender
J.D. Power and Associates offers the following tips for consumers when selecting and working with a mortgage lender:
View 2012 Primary Mortgage Origination Ratings
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"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. Power and Associates. "This increase in satisfaction is particularly impressive given the increasingly expanded origination timelines during the past year."
The study finds that steady improvements related to transparency and communication are driving much of the increase in customer satisfaction. During the past 3 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.
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 refinanced in 2012, only 40% cite price as their main reason for selecting their lender. Other reasons commonly cited 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," Martin said. "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. 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 2012 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from more than 3,500 customers who originated a new mortgage. Fielded between July 31 and August 27, 2012, the study measures customer satisfaction in four factors: application/approval process; loan representative; closing; and contact.
Quicken Loans ranks highest among primary mortgage lenders for the third consecutive year, with a score of 817, and performs particularly well in all four factors. 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.
Consumer Tips: How to Select and Work with a Mortgage Lender
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.
- 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.
View 2012 Primary Mortgage Origination Ratings
View All Financial Services Ratings
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