Consumers prefer candid, transparent mortgage originations

(11/20/2012) - Reducing anxieties and fear goes a long way toward obtaining customer satisfaction during the mortgage origination process.

To that end, the best mortgage lenders excel at communicating and they don't keep their customers in the dark, according to thousands of mortgage consumers.

When J.D. Power and Associates tallied the responses from 3,500 mortgage consumers who originated a home loan from July 31 to Aug. 27 this year, the top picks went to mortgage lenders who stayed in touch with consumers after they completed their application and didn't wait for consumers to call, but proactively kept consumers up to date on the status of their application.

"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.

The study, J.D. Power's "U.S. Primary Mortgage Origination Satisfaction Study" measured customer satisfaction in four key areas of the mortgage origination experience: application/approval process; the loan representative; closing and contact.

For the third year in a row, Quicken Loans beat out many of the nation's largest mortgage lenders and came out on top with an overall satisfaction rating of 817, out of a possible 1,000.

Quicken was the only lender the J.D. Power survey considered "among the best."

Following Quicken, mortgage lenders that consumers considered "better than most," were Branch Banking & Trust Co. (a J.D. Power score of 791 and the No. 10 mortgage lender by market share), U.S Bank (784 - No. 6 mortgage lender) and Chase (776 - No. 3 mortgage lender).

The industry average score was 761.

The rest of the pack were, SunTrust Mortgage (No. 8 mortgage lender by market share), Wells Fargo (No. 1 mortgage lender), Flagstar Bank, PNC Mortgage, Provident Funding (No. 9 mortgage lender), Fifth Third Mortgage, CitiMortgage/Citibank (No. 5 mortgage lender), GMAC Mortgage, PHH Mortgage (No. 7 mortgage lender) and, on the bottom, Bank of America (No. 2 mortgage lender by market share).

The full list of ratings is below.

"This increase in satisfaction is particularly impressive given the increasingly expanded origination timelines during the past year," said Martin.

Origination timelines have increased due to tighter underwriting standards and regulatory overhaul of the mortgage lending industry.

Low interest rates no silver bullet

While interest rates can be a driving force for attracting customers in today's market, once consumers are in the door, they also find value at the desks of loan officers who, well, hold their hand through the process.

"On the surface, most would assume that the interest rate is the primary factor in the decision-making process. 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," said Martin.

"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," Martin added.

Even high satisfaction scores and interest rates together aren't enough to single out a mortgage lender that fits. J.D. Power offers the following tips consumers should consider when both selecting and working with a mortgage lender:

• Do your homework. Research and understand the myriad types of loans available. Consider more than the interest rate while shopping.

• Be patient. It's a brave new home loan world. The mortgage origination process takes longer than it did a few years ago. Longer than you might think or wish.

Use technology. 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. If you are on the go, that's important. Ask your loan representative whether these options are available for your account.

Know the ropes. Make sure you fully understand the relationship you'll have with the lender you select. The mortgage origination company who takes your application may not be the same company that ultimately services your loan.

• Choose your connection. Let your loan representative know how to contact you - email, landline or smart phone - and then remain available and remain in the area until your loan closes. Take that vacation after you've moved in.

 

 

Other related articles:

Smaller mortgages, fewer foreclosures sustain housing recovery

Foreclosures: The unnatural disaster

Union Now: The Changing Picture of Credit Unions and the Banking Industry

Understanding Mortgages: Working with a Mortgage Broker

Lenders' compliance due on hundreds of National Mortgage Settlement servicing standards

Mortgage strike devised to leverage mortgage relief from lenders for underwater homeowners


Fannie Mae & Jumbo Mortgage Rates

Just One Click! = Current Rate Chart

Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachusetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California

Start by selecting your state


Get the Updated and Improved Mortgage Rates App from ERATE.com

ERATE App - Current Mortgage Rates and Credit Cards
FREE Mortgage Rate Widgets
Your State's Rates or National Rates
Get this Widget for any State you want