For the fifth consecutive year, Quicken Loans ranks highest in overall customer satisfaction among major U.S. mortgage originators, a J.D. Power survey shows.
The Detroit-based online mortgage lender earned an overall score of 841, beating out Bank of America, which ranked second with an overall score of 807, and Chase, ranking third with 805.
The survey aims to help mortgage originators improve the customer experience and help home buyers make informed decisions when considering a mortgage originator. It measures customer satisfaction with the mortgage origination experience in six factors: loan offerings; application/approval process; interaction; closing; on-boarding; and problem resolution.
Overall, customer satisfaction with the mortgage origination process averages 786. But the survey found that, overwhelmingly, home buyers need more help from their lenders.
More than one-third (35%) of all mortgage customers — and 43% of first-time home buyers — indicated they do not completely understand the process, resulting in an average decline of 179 points in overall satisfaction.
“With many prospective borrowers looking for guidance and reassurance, it is imperative that lenders are fully prepared to provide the detail and information these customers desire or the borrowers may decide to stay on the sidelines,” said Craig Martin, director of the mortgage practice at J.D. Power, in a written statement.
The majority (54%) of first-time home buyers indicate they don’t fully understand the different loan options available to them. Only 41% of first-time buyers and 56% of experienced mortgage customers indicate their representative completely explained the types of loans, terms, special programs, fees and options to reduce their down payment.
“The loan representative is the face of the organization for most borrowers and is relied upon to provide effective explanations, set accurate expectations and ensure consumers have confidence that they are making a good decision,” Martin said.
Written by Emily Study