J.D. Energy: Satisfaction With Mortgage Servicers Elevated Throughout Pandemic

4 mins read

Whereas a mix of aid efforts and pivots to digital options helped mortgage servicers earn excessive ranges of buyer satisfaction throughout the pandemic, a lot of that enchancment in satisfaction got here from non-bank corporations which have began to realize an edge over financial institution lenders, based on a current examine from J.D. Energy.

The J.D. Energy 2021 U.S. Main Mortgage Servicer Satisfaction Research discovered that general satisfaction with mortgage servicers had elevated by a major six factors on a 1,000-point scale over final yr’s outcomes.

“Mortgage servicer satisfaction was buoyed by the business’s response to the pandemic, with among the greatest beneficial properties in buyer satisfaction being pushed by at-risk and moderate-risk prospects who participated in forbearance applications,” Jim Houston, director of shopper lending intelligence at J.D. Energy, mentioned in an announcement.

Financial institution-affiliated servicers have traditionally outperformed non-banks by a big margin, JD Energy mentioned, however gained solely 4 factors in satisfaction this yr. Non-bank servicers noticed a major 17-point enhance in satisfaction.

“[A]ll that pandemic-driven goodwill belies an even bigger set of buyer expertise challenges – notably for bank-affiliated lenders,” JD Energy mentioned. “As mortgage forbearance applications come to an finish and extra normalized buyer interactions resume, conventional banks are beginning to lose their edge over non-bank lenders.”

Financial institution lenders did have excessive satisfaction with prospects who use a number of merchandise on the establishment. Satisfaction scores amongst prospects who use different financial institution merchandise was 55 factors increased in comparison with prospects who’ve solely a mortgage on the financial institution.

Clients experiencing issues paying their mortgage helped drive satisfaction this yr. Total satisfaction amongst at-risk prospects elevated 15 factors year-over-year whereas satisfaction scores amongst low-risk prospects declined by one level. Clients who participated in forbearance applications had the best ranges of satisfaction, scoring 846 out of 1,000 factors in comparison with 783 for individuals who by no means enrolled in a program and 776 for individuals who beforehand enrolled in a program however had been not enrolled.

Publish-pandemic buyer behaviors and the responses of low-risk prospects point out that the elevate in buyer satisfaction is perhaps short-lived, Houston mentioned.

“The truth is, regardless of the eye on aid applications, practically one-fifth of present mortgage prospects have had no interplay with their servicer throughout the previous yr,” Houston mentioned. “Mortgage servicers will really want to up their buyer engagement video games as {the marketplace} stabilizes.”

Web site utilization elevated 5 proportion factors this yr, however J.D. Energy mentioned there was nonetheless room for enchancment. Solely 38 p.c of consumers mentioned they discovered the specified data on the servicer’s web site throughout the first two pages. Total satisfaction declined 55 factors for purchasers who needed to go to greater than two pages.

Prime causes prospects gave when requested if they’d change lenders if given the chance included higher charges, higher or improved customer support, and “easy accessibility to assist myself to details about my mortgage.”

Rocket Mortgage, which incorporates Quicken Loans, was the highest-ranked mortgage servicer with a rating of 860. Guild Mortgage (825) ranked second and Huntington Nationwide Financial institution (827) ranked third. The business common was 787.

Leave a Reply

Previous Story

Matt Damon and Tom McCarthy on why Stillwater runs deep

Next Story

Greatest Low-cost Automobile Insurance coverage in Mesquite for 2021