Customer Satisfaction Still Drives the Industry By Phil Hall s 2014 begins, there is good news in regard to how consumers view the mortgage origination process. According to the J.D. Power 2013 U.S. Primary Mortgage Origination Satisfaction Study, customer satisfaction improved for a third consecutive year. The study, which works on a 1,000point scale, measured four factors in the origination process: Application/Approval Process; Loan Representative; Closing; and Contact. Overall customer satisfaction averaged 771 (on the 1,000-point scale in 2013, an increase from 761 in 2012 and 747 in 2011. Overall satisfaction among first-time homebuyers outpaced repeat buyers (772 to 757), while those seeking to refinance were more satisfied than those making a home purchase (775 to 765). J.D. Power also named Quicken Loans as being among the highest primary mortgage lenders, scoring 841 out of 1,000 points. The Detroit-based lender has held the top spot on the annual J.D. Power study since 2010. BB&T, which held the number one spot back in 2009, ranked second in this year’s study, which was based on the responses of 3,267 customers who either originated a new home loan or refinanced during the past 12 months. Across the industry, the results of an increased level of customer satisfaction was reaffirmed as the “new normal” of mortgage banking. “Now more than ever, excellence in customer service is critical to a lender’s success,” said Mat Ishbia, president and chief executive officer of Troy, Mich.based United Wholesale Mortgage (UWM). “Providing brokers and loan officers with an elite level of service will translate to a positive and memorable experience for their borrowers. To accomplish this, lenders need to provide unparalleled communication and consistency as well as control to their clients. In a constantly evolving industry, lenders who place an emphasis on service are going to come out on top.” Ishbia notes that the transition from a refi-dominated market to a purchasedriven market offers distinctive challenges in maintaining quality control. “As an originator, you have to continually think of new ways to market yourself when there is an impending market shift or new trend development,” said Ishbia. “As rates inch up and refi volumes decrease, originators need to ensure that they have built a reputation for providing next-level service. This can come in the form of quick, accurate answers for borrowers, forging
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JANUARY 2014 n Missouri Mortgage Professional Magazine n
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J.D. Power 2013 U.S. Primary Mortgage Origination Satisfaction Study
SM
Customer Satisfaction Index Ranking (Based on a 1,000-point scale) 650
750
850
Quicken Loans
841
JDPower.com TM Power Circle Ratings for consumers
lllll
BB&T (Branch Banking & Trust Co.)
798
llllm
U.S. Bank
783
llllm
PNC Mortgage
778
lllmm
Chase
773
lllmm
Industry Average
771
lllmm
768
Wells Fargo Home Mortgage
lllmm
CitiMortgage/Citibank
764
lllmm
SunTrust Mortgage
761
lllmm
Fifth Third Mortgage
756
Provident Funding Associates Bank of America
Power Circle Ratings Legend l l l l l Among the best
752 734
lllmm lllmm llmmm
Flagstar Bank
724
llmmm
PHH Mortgage
724
llmmm
l l l l m Better than most l l l m m About Average l l m m m The rest
Source J.D. Power 2013 U.S. Primary Mortgage Origination Satisfaction StudySM
relationships with real estate agents, implementing lead generation software/services, and aligning yourself with mortgage lenders that place service and quality as being the most important component of their value proposition. Your lender should be your secret to success when it comes to service. They need to deliver on their service commitments so that you can provide the best for your borrowers.” Corey Dubnoff, president of Parsippany, N.J.-based American Financial Resources Inc. (AFR), notes that high-quality customer service will be the driving force for the industry in the years ahead. “Consumers today are more powerful than ever,” said Dubnoff. “With the use of online social media and consumer protection/advocacy sites—government and non-government regulated—the consequences are real. Participants in this industry better have a culture of good customer experiences or they will not be around for very long.”
Dubnoff adds that originators need to be proactive in ensuring that customer satisfaction remains strong. “Picking up the phone and spending a few minutes to make sure everyone is on the same page is vital,” said Dubnoff. “Too many times, I see e-mail chains that end up going nowhere that take up so much time and energy that had they picked up the phone to have a conversation it would have saved time and would have most likely accomplished so much more.” Although the mortgage broker industry was not part of the J.D. Power research, the results of the study comes as no surprise to Don Frommeyer, president of NAMB—The Association of Mortgage Professionals and senior vice president at Amtrust Mortgage Funding in Carmel, Ind. According to Frommeyer, customer satisfaction is an integral part of the mortgage broker’s daily operation. “We do our own customer satisfaction survey on each of our loans,” said Frommeyer. “Our satisfaction levels
have also increased. A lot of this has to do with the fact that as mortgage brokers, we find the results that are right for each customer and put them where they need to be - whether it is a conventional loan or an FHA loan or a VA or a USDA product.” “In a lot of banks,” Frommeyer continued, “when a person applies for a loan, they often use a teller, and the loan is then passed on. With a broker, the borrower deals with that broker throughout the loan transaction.” Frommeyer also observed that today’s mortgage brokers rely very heavily on high quality customer care—both by design and by default. “Forty-five percent of mortgage brokers are still around compared to 2007,” said Frommeyer. “Those that remain are the best of the best.” Phil Hall is senior editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.