J.D. Power: Consumer Satisfaction with Mortgage Originators Declines

Customer satisfaction with mortgage originators industrywide declined five points to 851 on a scale of 1,000, according to the J.D. Power 2021 Primary Mortgage Origination Satisfaction Study of both bank and nonbank mortgage lenders released today.

Overall satisfaction with primary mortgage originators dropped for both bank and nonbanks due largely to declines in satisfaction with the refinancing process, J.D. Power said, adding that mortgage originators have struggled to manage surging refinancing volume as a record $4.4 trillion in new loans were originated in 2020. Guild Mortgage was the highest-ranked mortgage originator with a score of 884, followed by Rocket Mortgage with a score of 876 and Citi at 875.

The survey also suggested that younger consumers seek a mix of self-service channels and human interaction when applying for mortgages—76% of Generation Y and Z (those born between the years 1977 and 2004) who used both said they “definitely will” consider their lender for their next refinance. These customers also perceived that the timeline from application to approval was shortest when the experience combined live personal service and digital self-service.

However, when traditional text communications were added to the mix (such as email, text or mail), perceived timelines increased and satisfaction lowered. “The industry challenge is not to go all digital or all live personal service, but to tailor the right communication to the right customer at the right time,” the report noted.