Consumer Satisfaction With Mortgage Lenders Continues to Rise

Consumer Satisfaction With Mortgage Lenders Continues to Rise
  • Opening Intro -

    If you are planning to finance a new home or refinance your current home, you will be working with a mortgage provider to get this deal done.

    Banks, mortgage lending companies, credit unions and other financial providers work diligently to gain your trust and win your business.

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A recently released J.D. Power 2013 U.S. Primary Mortgage Origination Satisfaction Study reveals that first-time homeowners are increasingly satisfied with their experience.

JD Power scored lenders based on a 1,000 point scale. The higher the score, the better it reflects on mortgage companies. For 2013, scores rose for the seventh consecutive year, averaging 771 or up 10 points from 2012. In 2011, the average score was 747.

Customer Satisfaction: First-Time Home Buyers

The Power survey also revealed a few important matters about mortgage shoppers. For one, new mortgage holders are more likely to be satisfied with the process than people that finance. Power says that the lower score reflects “customers’ familiarity with the process.” Second, using electronic closing has improved customer satisfaction among those that choose this option. That score came in at 830 compared to 772 with paper documents.

Consumers that are purchasing new are increasingly finding more lenders competing for their business. As the number of borrowers seeking to refinance continues to fall, lenders are competing to win first-time homebuyers. Craig Martin, director of the financial services practice at J.D. Power noted that such buyers can help themselves by asking “…prospective lenders about the specifics of the mortgage process and how they will be kept informed.” He added that the stress some borrowers may experience “…comes from a lack of information and knowledge during the process.”

Quicken Loans Leads the Pack

Scoring highest among lenders was Quicken Loans with a score of 841. Branch Banking & Trust Co. (BB&T) came in second at 798. US Bank ranked third at 783. PNC Mortgage and Chase also scored above the industry average. Eight lenders scored below the industry average with Flagstar Bank and PHH Mortgage tying with the lowest scores at 724.

JD Power conducted its latest study from July 30 through Aug. 30, 2013. Its scores were based on responses it received from 3,267 customers who originated a new mortgage or refinanced within the past 12 months.

The Power survey does not share details about all lenders. Indeed, the sample for several mortgage providers including Amerisave Mortgage, Franklin American Mortgage, Ocwen Loan Servicing, and EverHome Mortgage were too small, thus these companies were not ranked.

Further Reading

Two Important Benefits of Mortgage Refinancing

Factor in The Upgrades Before you Sign a New Mortgage

How to Shop for a Mortgage

Will Mortgage Providers Ease Lending Standards?

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Categories: Home Financing

About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Auto Trends Magazine", an online publication. Matt covers campus, consumer, business and financial topics on various websites and weblogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".