U.S. consumers are less satisfied with their experience during the loan modification process than they are during loan origination, namely because mortgage servicers are missing the mark when it comes to delivering on best practices, according to ""J.D. Power and Associates"":http://www.jdpower.com.
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The global marketing and research firm found that during the loan modification process, mortgage servicers often fail to provide and adhere to a time frame for approval; they don’t explain the entire process to borrowers during application; and they rarely proactively provide the customer with status updates.
In addition, the survey revealed that borrowers are typically asked repeatedly for information related to their loan modification. For example, J.D. Power says only 28
[COLUMN_BREAK]percent of customers were asked to provide documentation and other information more than once during the mortgage origination process, compared with nearly 80 percent of customers during the loan modification process.
""While the loan origination process is already a milestone event for most homeowners, the stakes are even higher for those going through the modification process,"" said David Lo, director of financial services at J.D. Power and Associates. ""Homeowners navigating the loan modification process may be fearful of losing their home, and that can add significant fear and anxiety to an already stressful experience.""
Because of this borrower psychology, Lo says it is especially important that servicers make every effort to deliver on key best practices and make the experience as painless for customers as possible.""
J.D. Power says the key practices that have a particularly positive impact on customer satisfaction during mortgage servicing are fee transparency, which means communicating all fees to ensure complete understanding and no surprises, as well as efficient resolution once a problem is identified.
According to J.D. Power’s survey findings, ""Branch Banking & Trust Co."":http://www.bbt.com (BB&T) ranks highest in customer satisfaction among mortgage servicers, followed by ""SunTrust Mortgage"":http://www.suntrustmortgage.com, ""US Bank"":http://www.usbank.com, and ""Wells Fargo"":http://www.wellsfargo.com.