Despite a Rise in Use of Digital, Mortgage Customer Satisfaction Declines, J.D. Power Finds
Guild Mortgage Company and Quicken Loans Rank Highest in Customer Satisfaction
COSTA MESA, Calif.: 9 Nov. 2017 — The mortgage industry’s promise of technology creating a faster and easier mortgage origination process does not appear to be fully recognized, as mortgage customers are reporting slower purchase processes. That’s according to the J.D. Power 2017 U.S. Primary Mortgage Origination Satisfaction Study,SM released today, which finds that overall satisfaction with mortgage originators has declined this year, due in part to a perception of a slower process, despite a significant increase in the number of customers applying online.
“We’re at a critical inflection point in the mortgage industry where new technology and the growing use of digital mortgage application channels has made it possible for the origination process to move more quickly; however, the customer is still the final judge of speed and quality,” said Craig Martin, Director of the Mortgage Practice at J.D. Power. “A critical element of satisfaction is setting expectations, and this tends to be a weakness of technology, which is demonstrated by substantially lower satisfaction among customers who do not work with a human to complete their application.”
Following are some key findings of the study:
- Overall satisfaction declines as purchase process slows: Overall satisfaction with primary mortgage originators is down 8 points (on a 1,000-point scale) in 2017. This is driven in part by reports of longer times from initial application to closing. On average, the purchasing process took 36 days this year, an increase of almost a week from 2016.
- Digital use surges but not digital satisfaction: For the first time in the study’s history, both refinance and purchase customers cite online/website as the most frequent method of submitting a mortgage application. A total of 43% of mortgage customers indicate applying digitally in 2017, up from just 28% in 2016. Satisfaction among customers applying online/via website has declined by 18 points year over year and trails satisfaction with in-person applications by 10 points this year.
- Representatives play key role in building customer trust: Overall satisfaction among mortgage customers with high levels of trust in their loan representatives is 358 points higher than among those with low levels of trust. The top three elements driving that perception of trust are representatives always calling back when promised; continuity in working with a single representative throughout the process; and representatives proactively providing status updates.
Primary Mortgage Originator Rankings
Quicken Loans ranks highest in mortgage origination satisfaction for an eighth consecutive year, achieving a score of 878, but this year the company is not alone. Guild Mortgage Company also achieved a score of 878. PrimeLending follows with a score of 859.
The 2017 U.S. Primary Mortgage Origination Satisfaction Study measures customer satisfaction with the mortgage origination experience in six factors (listed alphabetically): application/approval process; interaction; loan closing; loan offerings; onboarding; and problem resolution.
The study is based on responses from 5,893 customers who originated a new mortgage or refinanced within the past 12 months, and was fielded in July-August 2017.
For more information about the U.S. Primary Mortgage Origination Study, visit http://www.jdpower.com/resource/us-primary-mortgage-origination-satisfaction-study.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.
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