Navy FCU | Report

Navy Federal Credit Union Achieves Highest Overall Score in 2018 Primary Mortgage Servicer Study

Navy Federal Credit Union achieves highest score in five study factors

According to the J.D. Power 2018 U.S. Primary Mortgage Servicer Satisfaction StudySM, Navy Federal Credit Union (Navy Federal) achieves the highest overall score*—888 vs. 758 industry average (on a 1,000-point scale). Navy Federal outperforms the industry average in all six study factors and achieves the highest score in five factors: New Customer Orientation, Billing and Payment Process, Escrow Account Administration, Mortgage Fees, and Interaction. The provider is particularly strong in the areas of Interaction (916 vs. 803 industry avg.), Escrow Administration (892 vs. 776), and Billing and Payment (905 vs. 791).


Overall Satisfaction

Chart: Overall Sat

J.D. Power research shows that the manner in which a service provider interacts with its customers can significantly impact overall customer satisfaction, whether it’s in person, via telephone, or online via the company website and/or chat. According to the study, Navy Federal excels with regard to interacting with customers online as 69% of its customers contacted the mortgage servicer via website/email/online chat vs. 44% for the industry. Additionally, Navy Federal has significantly higher online interaction ratings than the industry, particularly in the areas of Clarity of information provided (9.33 vs 8.22 industry avg. on a 10-point scale), Appearance of the website (9.21 vs 8.14), and Ease of navigating the website (9.20 vs 8.17).


Interactions

Navy Federal Interaction

Navy Federal customers experience fewer problems, on average, than other primary mortgage service customers, as only 5% of Navy Federal customers said they had a problem during the past 12 months vs. 8% industry average. When a problem does occur, Navy Federal excels at problem resolution, as 85% of Navy Federal customers (vs. 65% for the industry) indicate they were able to resolve the most recent problem/change/question with one contact and follow up was provided if needed.


Billing and Payment

Chart: Billing and Payment Process

Other companies included in the study (in alphabetical order): Arvest Central Mortgage, Bank of America, Bayview/Lakeview Loan Servicing, Carrington Mortgage Services, Cenlar, CitiMortgage Citibank, Colonial Savings, Ditech Financial, EverBank (TIAA), First Republic Bank, Flagstar Bank, Franklin American Mortgage, Freedom Mortgage, Guild Mortgage Company, Home Point Financial, LoanCare, LoanDepot, Mr. Cooper (formerly Nationstar Mortgage), Ocwen Loan Servicing, PNC Mortgage, Santander Bank, Shellpoint Mortgage Servicing, and Union Bank.


According to the study, escrow accounts lead to higher levels of customer satisfaction. Nearly all (91%) Navy Federal customers have an escrow account associated with their mortgage, with those customers typically using the accounts for homeowners’ insurance and real estate/property taxes. Furthermore, nearly all (95%) of these customers received an escrow analysis statement during the past 12 months, and about half of these customers received a guide explaining the escrow analysis. Additionally, Navy Federal received particularly high ratings for Management of escrow payments on your behalf (9.16).


Escrow Administration

Chart: Escrow Administration

Other companies included in the study (in alphabetical order): AmeriHome Mortgage, Arvest Central Mortgage, Bayview/Lakeview Loan Servicing, Capital One, Carrington Mortgage Services, Cenlar, Citizens One, Home Mortgage, Colonial Savings, Ditech Financial, EverBank (TIAA), Fifth Third Mortgage, Flagstar Bank, Franklin American Mortgage, Freedom Mortgage, Guild Mortgage Company, Home Point Financial, Huntington National Bank, LoanCare, LoanDepot, M&T Mortgage, Mr. Cooper (formerly Nationstar Mortgage), Ocwen Loan Servicing, PennyMac, PNC Mortgage, Provident Funding, RoundPoint Mortgage Servicing, Santander Bank, Shellpoint Mortgage Servicing, TD Bank, Union Bank, USAA Federal Savings Bank, and Wells Fargo Home Mortgage.


Additional study highlights for Navy Federal Credit Union include:

  • More than two-thirds (69%) of Navy Federal customers utilize the lenders’ website to conduct banking activities. Of that group, 96% were able to resolve their most recent online contact entirely online. Navy Federal receives particularly strong ratings for Clarity on information provided (9.33), Appearance of the website (9.21), and Ease of navigating the website (9.20).
  • More than one-third (37%) of Navy Federal customers used their mobile phone/tablet for mortgage-related activities, compared with 20% for the industry. Overall, customers using their smartphones have higher levels of satisfaction than those not conducting mobile activities.
  • Navy Federal has high brand image ratings, as the provider receives the highest ratings in six of the seven areas measured. Highlights include “good reputation” (6.72 on a 7-point scale) and “reliable” (6.66).
  • Strong satisfaction and image lead to high levels of customer advocacy. Navy Federal’s Net Promoter Score (NPS)[1] is 85—significantly higher than the industry (7). Furthermore, 89% of Navy Federal customers are brand promoters.

The Special Power Report • Published by J.D. Power • Published November 2018 • © 2018 J.D. Power. All Rights Reserved. Reproduction of any material contained in this publication, including photocopying in whole or in part, is prohibited without the express written permission of J.D. Power. Advertising claims cannot be based on information published in The Special Power Report.

[1] Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS- related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

*Navy Federal Credit Union is a financial services provider that primarily serves U.S. military members, veterans and their families, and therefore is not rank-eligible in the study.

Key Performance Indicators (KPIs) are diagnostic measures that have the most significant impact on customer satisfaction. Navy Federal significantly outperforms the industry on multiple Billing and Payment KPIs. Highlights include:

85% vs. 65%

INDUSTRY AVERAGE

Able to resolve the most recent problem/change/question with one contact and follow-up was provided, if needed

73% vs. 51%

INDUSTRY AVERAGE

Offers the ability to receive account alerts

48% vs. 27%

INDUSTRY AVERAGE

Offers flexible payment options that suit budget or date/timing preference
About the Study
The 2018 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. The study is based on responses from 7,776 customers who originated a new mortgage or refinanced within the past 12 months. It was fielded in March-April 2018. The study now also includes the Net Promoter Score® (NPS)[1], which measures customers’ likelihood to recommend both their vehicle make and model on a 0-10 scale.

For more information, see our Primary Mortgage Servicer Satisfaction Study Results