Customers were slightly less satisfied with mortgage originators in the second quarter, and too much technology may be the culprit, according to the latest J.D. Power 2019 U.S. Primary Mortgage Origination Satisfaction Study. Lenders have been adding self-service technology to increase convenience in the mortgage process while trimming their customer-facing staff. But too much tech may fall short of customers’ expectations for service, the study notes.
“It is critical that originators get the balance right between tech and staffing to be able to deal with the swings in loan volume that can dramatically change from month to month,” says John Cabell, director of wealth and lending intelligence at J.D. Power.
J.D. Power researchers found that a bulk of the loan origination process is being managed manually via email and phone, despite the industry’s push toward self-service tools and mobile apps. Only 15% of customers indicated using their mortgage originator’s mobile app, the study found. Customer satisfaction scores tended to be higher when they had access to real-time status of their loan via an online portal.
Overall, Quicken Loans ranked highest in J.D. Power’s mortgage origination satisfaction for the 10th consecutive year. Fairway Independent and Guild Mortgage Company followed at second and third, respectively, on the list.
J.D. Power’s 2019 U.S. Primary Mortgage Origination Satisfaction Study measures customer satisfaction based on the following performance factors: application/approval process; communication; loan closing; and loan offerings. The study is based on responses from 4,602 customers who originated a new mortgage or refinanced over the past 12 months.
Source: “2019 U.S. Primary Mortgage Origination Study,” J.D. Power (November 2019)
