Study: Improving Customer Service a Worthwhile Investment for Servicers

Improving the customer experience is worth the investment for mortgage servicers, according to the 2016 J.D. Power study of consumer satisfaction with their primary mortgage servicers. Companies that invest in improving customer experience typically see fewer complaints, more opportunities for cost reduction, lower instances of portfolio loss and increased business with current and prospective customers, the survey said.

“Servicers with a captive audience often view taking measurable steps that improve the customer experience as an unnecessary investment,” said J.D. Power Mortgage Practice Director Craig Martin. “They aren’t against improving satisfaction, but cost containment is their top priority. The study clearly shows, however, that interacting with customers more efficiently—and more effectively—can reduce costs and increase profit.”

The most satisfied customers — those rating their servicer 900 or higher (on a 1,000 point scale) — were more likely to stick with their current servicer; 66 percent they definitely would refinance their home with their current servicer. On the other hand, when satisfaction was below 600, 63 percent of customers said they would switch to a different servicer and 27 percent said that their poor servicing experience led them to close or consider closing other accounts held with their servicing company.

Quicken Loans continued to top the list of large servicers with highest customer satisfaction, but banks occupied the next several slots, led by Huntington National Bank, Columbus, Ohio; Regions Mortgage, Birmingham, Ala.; TD Bank, Portland, Maine; Citizens Financial Group, Providence, R.I.; and Chase Bank. Apart from Quicken, nonbank servicers tended to occupy the lowest tier of customer satisfaction.