Originators who fear digital mortgage platforms will replace them have less to worry about than they might have thought. That’s because just 3% of mortgage customers exclusively rely on digital self-service channels in the origination process, according to the J.D. Power 2018 U.S. Primary Mortgage Origination Satisfaction Study. Customer satisfaction scores reflect performance on six factors, including loan offerings, application-approval process, on-boarding, interaction and problem resolution.
“Technology alone is not a magic bullet in this market; the key is knowing where to leverage it and where to layer in more traditional forms of one-on-one support," said John Cabell, financial services practice lead at J.D. Power. "While improved digital offerings are helping mortgage originators build customer satisfaction, it is important to find the right balance between digital, self-service offerings and personal interaction with a representative.”
For lenders that have made, or plan to make, large investments in automation, there’s reason for concern. Overall satisfaction, based on a top score of a 1,000, is highest among customers who spoke only with their lender in person or over the phone (871) when applying for a mortgage, followed by those who used a mix of personal and self-service tools (868).
Originators add the most value in the follow-up contact after an initial inquiry, and when confirming loan terms and payment, but for maximum borrower satisfaction—speed is of the essence. That’s because satisfaction levels decline sharply for each day spent waiting to hear back from a lender. Overall satisfaction among customers who receive a contact within one day is 869, on a 1,000-point scale.
Satisfaction falls to 852 after two to five days, and to 806 after six or more days. The inquiry channel with the fastest overall contact times, two days on average, is online through a smartphone-tablet or a desktop computer, 2.2 days.
Overall satisfaction with primary mortgage originators increased 10 points due to digital and mobile channels. On average, customers use 3.1 different channels during the mortgage process, with phone (72%), website (69%) and email (58%) being the most commonly used channels.
Quicken Loans ranks No. 1 in mortgage origination satisfaction for a ninth consecutive year, with an 876 score. Fairway Independent Mortgage ranks second, 873, and Guild Mortgage Company ranks third with a score of 857. Mr. Cooper increased 41 points from last year, the largest increase among lenders.
