Are Mortgage Lenders Making the Cut According to Customers
According to a recent article in the Washington Post, mortgage lenders are coming in with about a C-grade when it comes to customer service. Overall customer satisfaction is at a seven-year high and lenders scored an average of 771 out of 1000 or roughly a C+ on the grade level. While that’s not terrible it’s not phenomenal either.
JD Power asks customers of the 25 largest lenders in the country to rate their experience with four parts of the mortgage origination process. This includes the application, approval, loan representation, and the closing experience in addition to the contract. For the fourth straight year in a row, Quicken Loans came out on top earning 841 points out of the 1000. It’s the only lender that pass the 800 mark. Coming in close was BB&T, U.S. Bank, PNC Mortgages and Chase.
Refinances skewed online of the results making up a larger volume of responses. Customers who refinanced tended to be happier with their lender than those completing their first home purchase. This is primarily due to the familiarity that refinances have with the process. If you’ve already gone through the refinance process you know what to expect and are not surprised with the amount of paperwork and details needed to complete a refinance or home purchase.
First Time Vs. Refinance
Many first-time homebuyers are not clear about their loan options so they may not know where to go or even how to begin. Most first-time homebuyers tend to feel more comfortable with a hometown bank, credit union, or personal mortgage broker.
Those that are refinancing may feel more comfortable going online, with larger banks, for automating the process. First-time homebuyers may be shy about asking questions and feel embarrassed that they fully don’t understand what’s going on. Those that have been to the process feel more comfortable asking questions and making sure they understand the transaction.
Because so many banks and financing institutions offer similar interest rates it can be hard for lenders to differentiate themselves. They are trying to focus on customer service experience to gain new business.
According to Craig Martin, director of the financial services practice at JD power and Associates, “the most common problems are things like customers not being called back in a timely manner or customers not being able to get a hold of a loan representative.”
We know that in any industry communication is key. First-time homebuyers don’t want to be left in the dark, confused about any part of the process. Keeping them in the loop, staying on top of that communication and providing them with the information they need in a timely manner all creates good customer service for everyone.
Home buyers and borrowers should feel empowered to ask any question about the process and transaction at any time.
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