The study measured customer satisfaction in four key factors of the
mortgage origination experience: application/approval process; loan
officer/mortgage broker; closing; and contact.
According to the study time from application to approval has increased
to 27.5 days in 2010 from 20 days in 2009. As a result, the time frame for
the entire origination process has increased to 52.1 days in 2010 from 46.9
days in 2009.
Overall satisfaction has decreased to 734 (on a 1,000-point scale) in
2010 from 739 in 2009.
"While the revised Real Estate Settlement Procedures Act guidelines appear
to have streamlined and shortened the time from approval to closing, the
unintended consequence is that the application to approval time frame has
lengthened and become more complicated," said David Lo, director of
financial services at J.D. Power and Associates.
"Ultimately, this longer timeline has a negative impact on overall
satisfaction, although there are specific best practices that may mitigate
the negative perceptions," Lo said.
The study finds that the most important best practices, which are most
closely associated with high levels of satisfaction, are:
Providing proactive updates on the status of the loan.
Providing a welcome acknowledgment after an application is
Avoiding asking for the same information more than once.
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