ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Mortgage

Study: Mortgage servicers’ customer satisfaction drops sharply

July 24, 2025
Reading Time: 2 mins read
Mortgage rates continue drop 

Customer satisfaction scores for mortgage servicers are significantly lower — and declining — than they are for mortgage originators, based on the results of J.D. Power’s recent 2025 U.S. Mortgage Servicer Satisfaction Study.

Customer satisfaction with mortgage servicers has plummeted in 2025, with an average satisfaction score that is now 131 points (on a 1,000-point scale) lower than the average score for mortgage originators. Though the average 30-year mortgage rate in the United States continues to hover near recent highs of 6.8%, high rates alone do not explain the drop, study authors said, who noted that the difference increasingly comes down to effective communication and customer service.

Overall customer satisfaction with mortgage servicers is 596, which is down 10 points from the 2024 study. Customer satisfaction with mortgage servicers declines across all dimensions year over year. This decline contrasts with customer satisfaction with mortgage originators, which reached a score of 727 in the J.D. Power 2024 study of U.S. mortgage origination satisfaction.

While better interest rates and lower costs and fees are cited most frequently by customers as a reason to switch mortgage providers, service quality and responsiveness can be equally powerful drivers of customer loyalty and retention, the study seemed to indicate. Customers cite better/improved customer service (51%); easy access to loan information (36%); and flexible ways to make a mortgage payment (27%) among the top reasons to switch mortgage companies.

Thirty-one percent of mortgage servicer customers gave an excellent or perfect rating to their servicer for messaging that got their attention. Attention-getting is rated higher when there is a level of personalization added to the communication. Among those who have received personalized communications, account alerts are the most frequently recalled form of communication at 46%. Just 32% of customers give their mortgage servicer a high overall communication rating, down five points from 2022.

Escrow costs are rising nationwide, with 57% of mortgage servicer customers experiencing an increase in escrow costs this year. Overall satisfaction is 67 points lower, on average, among those who experienced an escrow cost increase than among those who experienced no change.

“[Interest] rates are still high, volumes are down, consumer financial health is strained and the industry is struggling to maintain high levels of customer engagement and personalization throughout the servicing experience,” said Bruce Gehrke, senior director of lending intelligence at J.D. Power. “However, without delivering on important loyalty and advocacy metrics, servicers could be headed for some challenges down the road when volumes pick back up again.”

 

Tags: mortgage servicing
ShareTweetPin

Related Posts

Mortgage rates fall

Mortgage rates inch down

Economy
November 5, 2026

The rate for a 30-year fixed-rate mortgage was 7.18% this week. The rate for a 15-year fixed-rate mortgage was 6.57%.

Fed Survey: Banks tighten policies on commercial real estate lending

Fed survey finds weaker demand for commercial real estate loans in Q3

Commercial Lending
November 2, 2026

During the third quarter, banks reported that lending standards for commercial and industrial loans to large and middle-market firms were basically unchanged, while standards tightened for C&I loans to small firms, according to the Federal Reserve’s latest senior...

FHFA to create affordable housing advisory committee

ABA, associations support proposed changes to FHA minimum property requirements

Mortgage
October 29, 2026

By aligning the Federal Housing Administration’s single-family minimum property requirements with those used by Fannie Mae and Freddie Mac, federal housing authorities would be making one of the most meaningful updates to FHA valuation policy in years, ABA...

Mortgage rates fall

Mortgage rates drop

Economy
October 29, 2026

The rate for a 30-year fixed-rate mortgage was 7.24% this week. The rate for a 15-year fixed-rate mortgage was 6.6%.

Fannie Mae updates servicing guidelines

Fannie Mae posts updates to its AI and cybersecurity requirements

Mortgage
October 27, 2026

Among the new requirements is a 36-hour cybersecurity incident reporting window requiring companies to provide Fannie Mae with “prompt” details about the incident, including the event date, details of actions taken and if the event caused suspension of...

Indexes: Monthly home prices are mixed, rise overall

Mortgage
October 27, 2026

According to the Federal Housing Finance Agency’s monthly House Price Index, U.S. house prices rose nationwide in August, up 0.3% from the previous month. House prices rose 2.4% from August 2025 to August 2026.

NEWSBYTES

Mortgage rates inch down

November 5, 2026

Banking agencies release CRA data on small-business, small-farm lending in 2025

November 5, 2026

Treasury, IRS announce ‘Opportunity Zone’ designations

November 5, 2026

SPONSORED CONTENT

Banking Technology at a Strategic Crossroads

Banking Technology at a Strategic Crossroads

October 29, 2026
The Shift from Demographic Marketing

The Shift from Demographic Marketing

October 1, 2026
Meeting Ag Lending Goals Without Going It Alone

Meeting Ag Lending Goals Without Going It Alone

October 1, 2026
Beyond the Portfolio: The Wealth Manager’s New Role in a Multigenerational World

Beyond the Portfolio: The Wealth Manager’s New Role in a Multigenerational World

September 17, 2026

PODCASTS

Podcast: Proactively managing the core provider relationship

October 22, 2026

Podcast: How community banks can keep farmers farming in turbulent times

October 14, 2026

Podcast: The birth of American money and how it triggered a revolution

October 8, 2026

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.