Rocket Mortgage by Quicken Loans Ranks Highest in Customer Satisfaction for 11th Consecutive Year
TROY, Mich.–(BUSINESS WIRE)–Record low interest rates have driven U.S. home sales to a 14-year high and spurred a 200% annual increase in refinancing. While this boom in volume has generally been positive for primary mortgage originators, it has also exposed underlying weaknesses in their digital strategies that could create challenges down the road. According to the J.D. Power 2020 U.S. Primary Mortgage Origination Satisfaction Study,SM released today, mortgage originators’ shortcomings in the areas of self-service tools for application and approvals, frequent communication and long loan processing times could negatively affect customer satisfaction over 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. While some of these shortcomings may have been opportunities in prior years, current market conditions and customer satisfaction metrics indicate that mortgage originators need to look hard at fixing them if they want to stay viable.”
Following are some key findings of the 2020 study:
- Overall customer satisfaction buoyed by low rates: Overall customer satisfaction with primary mortgage originators rises six points (on a 1,000-point scale) this year, driven largely by the competitiveness of interest rates offered. However, satisfaction in several critical client service attributes, such as loan processing time, ease of self-service interaction and helpfulness of customer service, has declined from a year ago.
- Average refinancing processing time increases: In 2020, the average loan refinancing transaction took 42 days from application to closing, up from 39 days in 2019. Accordingly, refinancing customer satisfaction with the timeliness of the application process and length of time from final loan approval to closing declined year over year.
- Self-service channel usage falters in application/approval process: The number of customers using self-service channels for loan applications and approvals increased five percentage points this year while the number of customers using personal service channels (in-person, phone and e-mail) declined five percentage points. Despite the increase in utilization, however, satisfaction with the application and approval process among customers using self-service digital channels declined 10 points this year.
- Satisfaction directly linked to frequency of communication: The more lenders communicate with customers during the application, closing and onboarding processes, the more customer satisfaction improves. Customers with the highest level of satisfaction (929) receive daily communications from their lender. However, this occurs just 11% of the time.
Rocket Mortgage by Quicken Loans ranks highest in mortgage origination satisfaction for an 11th consecutive year, with a score of 883. Bank of America (860) and Chase (860) each rank second in a tie.
The 2020 U.S. Primary Mortgage Origination Satisfaction Study measures overall customer satisfaction based on performance in four factors (in alphabetical order): application/approval process; communication; loan closing; and loan offerings. The study was fielded in June-August 2020 and is based on responses from 4,300 customers who originated a new mortgage or refinanced within the past 12 months.
For more information about the U.S. Primary Mortgage Origination Satisfaction Study, visit https://www.jdpower.com/resource/us-primary-mortgage-origination-satisfaction-study.
To view the online press release, please visit http://www.jdpower.com/pr-id/2020152.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
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