Longer loan processing times, infrequent communication and challenges using digital tools adversely impact customer experiences with mortgage originators, but overall customer satisfaction with their lenders increased this year, according to a survey released by J.D. Power on Monday.
The J.D. Power 2020 US Primary Mortgage Origination Satisfaction Study found that customer satisfaction increased by six points this year, largely driven by low interest rates amid the Covid-19 pandemic.
Specifically, the study found:
- Average refinancing time took 42 days from application to closing, up from 39 days in 2019 – with customer satisfaction about wait time declining accordingly.
- Satisfaction with the application and approval process declined 10 points this year.
- Customers using self-service channels for applications and approvals climbed five percentage points, while customers using phone, e-mail and in-person tools declined five percentage points.
- Customers appreciate frequent – especially daily – communication during the application and closing process, though report this only happens 11 percent of the time.
“It’s been a complicated year for the mortgage industry,” said Jim Houston, managing director of consumer lending and automotive finance intelligence at J.D. Power. “Between surging customer volumes on the origination side, an influx of customer inquiries on the servicing side and a workforce that has been completely displaced by the pandemic, resources have been stretched to their limits. That strain is showing up in slower loan processing times, missed opportunities to communicate and unreliable self-service tools.”
Among companies, Rocket Mortgage, Bank of America and Chase led the way on customer satisfaction.