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Building Trust in Servicing

Due to their nature, most mortgage servicers are not selected by their customers, and as a result, some of the lowest customer satisfaction and Net Promoter Scores (NPS) of any industry group studied by J.D. Power. According to J.D. Power, the industry average for overall satisfaction with mortgage servicers is 777 as of 2019, just below life insurance (779) and just above health plans (712) at the bottom of the industries studied by J.D. Power.

"Mortgage servicers are really missing an opportunity to build the kind of goodwill with their customers that has proven to translate directly to increased advocacy and repeat business,” said John Cabell, Director of Wealth and Lending Intelligence at J.D. Power. “The industry’s laser focus on lowering costs, managing regulatory compliance and minimizing delinquencies has come at the expense of customer experience. It is negatively affecting customer trust in their brands.”

The average NPS for primary mortgage servicers is 16, one of the lowest of any industry studied by J.D. Power. J.D. Power’s study found that around 70% of customers do not have complete trust in their primary mortgage servicer, leading to the lowest customer satisfaction and NPS scores. However, the study notes that for the 30% of customers who “completely trust” their mortgage servicer, customer satisfaction scores average 256 points higher, NPS is 69 points higher and customers are three times more likely to reuse the company for the purchase of a new home.

Customers who were transferred reported the lowest satisfaction, J.D. Power reports. Around 54% of first-time home buyers say they are confused, angry or irritated when transferred.

“This phenomenon spotlights the unique communications and customer experience challenges mortgage servicers still need to address with transferred customers,” J.D. Power notes.

The survey names Quicken Loans as the highest-ranked mortgage servicer for the sixth consecutive year, with a score of 878. Regions Mortgage (848) ranks second and Guild Mortgage (828) ranks third.

About Author: Seth Welborn

Seth Welborn is a Staff Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.
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