Find out how Rocket and UWM performed in the survey
In these times of heightened consumer anxiety, it’s best to rely on brokers rather than mortgage servicers to take care of clients.
That’s the assessment of Mike Rankin (pictured), president of ClearPath Mortgage Solutions, on the heels of a national customer satisfaction survey centered on mortgage servicers. The recent JD Power survey polled consumers on a battery of questions related to the level of trust they have with servicers, how well they are kept informed and educated and how satisfied they were in terms of resolutions.
Among the survey’s key findings was that the proportion of mortgage servicing customers identified as financially unhealthy was 54%. Default risk was also up 4% this year among mortgage customers.
The survey also found that overall customer satisfaction with mortgage servicers was 601 (on a 1,000-point scale), down six points from 2022. The drop was most significant among the 37% of customers who had their mortgage transferred to a servicer that they did not choose. Overall satisfaction scores are 119 points lower when customers do not choose their mortgage servicer.
Leaving customer care to brokers
Rankin, who founded and owns ClearPath Mortgage Solutions in upstate New York, said the survey confirmed a long-held belief: “On the mortgage broker side, I have found that it was never good to rely upon the mortgage servicer to take care of the client,” he told Mortgage Professional America. “As mortgage brokers, we’ve always taken that into our own hands by creating a client success team, whose focus is on making sure clients reach out to us first as the mortgage broker and we then internally help them navigate any servicer-related issues.”
The approach has worked, Rankin said. An added benefit of the nurturing tactic is that it keeps a loan officer’s name on the mind of borrowers – in essence expanding their attention spans.
“We found this to be a great way to cut down on dissatisfaction and increase connection and relationship building with the clients,” he said of his company’s “client success” focus. “Statistics show that the average customer forgets the loan officer’s name within 12 months after closing, so dealing with any client success issues, aka servicing issues, allows us to be top of mind with our customers and maintain that connection.”
The preferred approach in handling clients is informed by regulations unique to his home base in the state of New York: “In the state of New York, the escrow issues are more complicated than a servicing customer service rep will understand in another state,” he said. “We found that our involvement speeds up the resolution process greatly because we speak the lingo and understand the local taxes.”
Rocket ranks higher than rival UWM in customer survey
In the JD Power survey, consumers were asked to rate across six different metrics, including the level of trust they have with the brand; how well they are kept informed and educated; and the level of effectiveness mortgage firms have in resolving problems or issues. All told, the J.D. Power Mortgage Servicer Satisfaction Study provides detailed information and insights on the performance of more than 30 of the largest servicers. Rocket Mortgage ranks highest among mortgage servicers with a score of 686 on a 1,000-point scale, followed by Guild Mortgage (668) and Chase (665). Rocket’s fiercest competitor, United Wholesale Mortgage, scored 612 in the satisfaction survey.
“Mortgage servicers want to help customers when they are under financial stress or having problems with their account,” JD Power researchers wrote. “The key for customers is to notify their mortgage servicer as early as possible and to provide as much detail as they can to get the best guidance.”
The survey comes amid a high level of uncertainty among consumers: “With the average rate on a 30-year fixed-rate mortgage currently sitting at 6.8% -- the highest level since November 2022, -- and costs for everything from home insurance to maintenance and repair to groceries still elevated, mortgage servicer customers are feeling strained,” researchers wrote. That combination of reduced financial health, an increased rate of mortgage transfers and a rise in reported account problems is driving a significant decline in customer satisfaction, the survey found.
“The past year has been an incredibly challenging time for both customers and the mortgage industry—and there remains a lot of uncertainty,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at J.D. Power. “So far, the worst-case scenarios haven’t come to bear but mortgage servicers need to ensure they aren’t ignoring key advanced indicators. We have seen the percentage of financially unhealthy mortgage customers rise to 54% from 48% during the past year.”
Mortgage servicers should take note: “Servicers need to ensure they are building trust and engaging with their customers so they can effectively stay ahead of potential problems when customers face financial hardships,” Martin said. “When customers lack trust in their servicer, the costs to serve increase materially because those customers will gravitate to more costly service channels and they are at higher risk to take their complaints beyond the company.”
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