| J.D. Power and Associates released a new study of | | | | satisfied and loyal, but also have twice as many |
| customer satisfaction for primary mortgage borrowers | | | | additional products with the lender." |
| in the U.S. The study revealed some interesting | | | | Fifty percent of customers pay their mortgage bill |
| reasons for satisfaction or non-satisfaction with a | | | | electronically, a surge from the 34% in 2004. The |
| mortgage originator. | | | | study revealed that electronic payments result in a |
| Homeowners ranked USAA Federal Savings Bank | | | | higher customer satisfaction level overall. |
| the highest in customer satisfaction when it comes to | | | | "The more billing and payment of mortgages is |
| the service of a primary mortgage, according to the | | | | automated or conducted online, the more consistent |
| survey. | | | | and accurate loan servicing becomes, ultimately leading |
| The customer satisfaction was calculated in four | | | | to higher levels of customer satisfaction," said Clancy. |
| areas: the administration of the account, the billing | | | | "The bottom line is that satisfied customers require |
| process, the payment process and the process of | | | | less contact with their servicer's customer service |
| contacting the mortgage servicer. | | | | department, resulting in lower servicing costs for the |
| "USAA Federal Savings Bank is simply doing things | | | | lender. |
| right and doing them right the first time," said Rocky | | | | "In addition, mortgage servicers who are successful in |
| Clancy, the executive director of the mortgage | | | | satisfying their customers can expect greater revenue |
| practice for J.D. Power and Associates. "When USAA | | | | as a result of customers recommending the company |
| makes commitments to their customers, they meet | | | | to others more often, and obtaining additional |
| those commitments. Customers will forgive mistakes, | | | | non-mortgage services from the lender." |
| but they tend not to forgive broken promises. | | | | The study was based on responses from 12,799 |
| Problems are inevitable, but having a proper approach | | | | homeowners between March and April of 2006. The |
| to those issues can speak volumes." | | | | top ten mortgage servicers according to satisfaction |
| The study revealed that around 45% of mortgages do | | | | ranking were: |
| not remain with the originator for servicing after the | | | | |
| mortgage is closed. Those consumers with outsourced | | | | 1. USAA Federal Savings Bank |
| mortgages on average have satisfaction score of 32 | | | | 2. BB&T |
| index points lower. | | | | 3. Citizens Bank |
| "While this is a common practice in the industry, | | | | 4. GMAC Mortgage |
| removing the homeowner from the decision to sell the | | | | 5. Wells Fargo |
| mortgage to a different company for servicing can | | | | 6. Bank of America |
| create confusion and a sense of betrayal among | | | | 7. First Horizon Home Loans |
| customers," explained Clancy. | | | | 8. CitiMortgage |
| "Customers want stability and consistency with their | | | | 9. SunTrust Mortgage |
| home loans, and lenders who can deliver those are | | | | 10. |
| rewarded with customers who are not only more | | | | |