Hands-on lenders score higher satisfaction points
Mortgage lender satisfaction has taken a hit this year after a surge in 2023, according to the latest Mortgage Origination Satisfaction Study from J.D. Power.
The report pointed to climbing mortgage rates and higher home prices as key factors contributing to the dip in customer satisfaction. Despite the Federal Reserve’s September rate cut, the average 30-year mortgage rate in the US reached 6.9% in November, its highest level since August, making it harder for borrowers to navigate the housing market.
The study noted that lenders who take a hands-on approach, providing personalized guidance and advice, are reaping higher satisfaction scores.
“The variability in rates and higher costs for buyers increases the importance of understanding consumers’ individual situations,” said Bruce Gehrke, senior director of wealth and lending intelligence at J.D. Power. “Consistently, we’re seeing that lenders that play an active advisory role in helping their clients navigate the current market are earning significantly higher customer satisfaction, loyalty and advocacy scores than those that are treating mortgage lending as a transactional process.”
Overall customer satisfaction was 727 out of 1,000, down three points from last year. Gehrke said that reduced staffing among lenders this year could be making it harder for some to maintain the personal touch customers appreciated in 2023.
The biggest drops in satisfaction were in digital services, communication, and loan options. Notably, the study found that when customers have direct interactions with local representatives, satisfaction jumps by 40 points. When lenders play a trusted advisor role, satisfaction scores jump by 133 points, especially as they guide clients through financial decisions in this challenging market.
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Early engagement also boosts satisfaction. It’s 41 points higher when lenders connect with potential borrowers before they start actively looking, but drops sharply by 107 points if lenders wait until customers are applying for a mortgage.
Prosperity Home Mortgage led in customer satisfaction with a score of 772, followed by Movement Mortgage at 761 and Bank of America at 760.
The study, which surveyed over 7,500 mortgage customers, evaluated factors like communication, trust, digital access, and ease of doing business.
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