Don’t these guys just rate cars and appliances? That’s what I thought until I saw the new survey titled simply, “Satisfaction with Mortgage Servicing Declines for a Second Consecutive Year.”
Looking down the list of small time and big time mortgage servicers, I see the familiar names and players. Some belong where they are on the list. Like the infamous predatory servicer, “OCWEN”, who was dead last in customer satisfaction. But other mortgage servicers who deserve to be at the bottom with OCWEN were given just too much props and or persuasion to give them a higher rating than I feel was warranted. I am sure thousands of housing counselors, Non-Profit CEO’s and struggling homeowners will attest to this fact also.
Take for example, Wells Fargo.
They came out at a high #3 in the survey and anyone who is worth their salt will tell you that this is the biggest crock of crap they have ever heard. They belong tied with OCWEN in servicing hell at the bottom of the heap. They didn’t even address ASC (American Servicing Company) who is owned by Wells Fargo and hides under the anonymity of ASC in the predatory servicing shadows.
Big mistake JD Powers.
Then we have the infamous Wachovia (merged with World Savings). The “new” poster child for predatory servicing. They came up on the list at #8. Most borrowers will also attest that the last thing they get when they call Wachovia is satisfaction.
BB&T must be doing something right. They came in at #1 and I can attest that I do not receive too many requests for help with this firm. But, they are a very small fish in the mortgage servicing sea. It’s akin to comparing Jaws (a Countrywide, Chase or OCWEN) to Little Nemo (BB&T).
Do these guys compare a Mercedes to a Kia or what?
Here is the survey from JD Powers (click on the link to see their survey and the graph). They really need to stick to cars!!!!
WESTLAKE VILLAGE, Calif.: 9 September 2008 — For a second consecutive year, customer satisfaction with the servicing of mortgages declined, according to the J.D. Power and Associates 2008 Primary Mortgage Servicer StudySM released today.
The study measures customer satisfaction with four areas of loan servicing: billing; payments; contact with the lender; and annual account administration. Overall satisfaction in 2008 decreases 14 index points to 784 on a 1,000-point scale, down from 798 in 2007 and 812 in 2006. Increased billing errors, more service “hand-offs,” and a larger number of customers making late payments all contribute to lower satisfaction levels.
“For most customers, their mortgage servicer is akin to a utility company—they just want things to work, and they expect a friction-free experience,” said Rocky Clancy, executive director of financial services at J.D. Power and Associates. “Any bumps in the road that cause customers to have to spend time asking questions or solving problems negatively impact satisfaction, particularly if they have to call more than once or talk to more than one person to get their issues resolved.”
The study finds that, in addition to reducing the number of problems and improving the resolution experience, a key to customer satisfaction is increasing customer adoption of electronic billing and payments. Fifty-six percent of customers report making payments through an automatic deduction or a Web site, compared with 36 percent of customers making payments by mail. In 2006, 49 percent of customers made payments electronically, while 42 percent paid via mail.
“Satisfaction with payment processing is 50 points higher for people making payments electronically instead of through ‘snail’ mail,” said Clancy. “Automatic deductions, in particular, are associated with fewer problems because once things are on auto-pilot, the chances of something going wrong are slim.”
Branch Banking and Trust (BB&T) ranks highest among primary mortgage servicers for a second consecutive year with a score of 839. BB&T performs well in all four areas driving satisfaction and achieves high levels of commitment from its customers. SunTrust Mortgage (825) and Wells Fargo (813) follow BB&T in the rankings.
Customers with high levels of commitment to their primary mortgage servicer are more than three times more likely to say they “definitely will” continue to do business with their current lender than those customers with moderate levels of commitment.
“Primary mortgages tend to be a highly commoditized product, so lenders can benefit considerably by increasing loyalty among their current customers,” said Clancy. “Highly committed customers tend to make more recommendations, intend to use the mortgage servicer again in the future, are less likely to switch and are more likely to use multiple products with the same firm—all of which help to benefit a lender’s bottom line.”
In addition, servicers stand to earn considerable financial gains by making improvements in key areas, according to the study.
“By improving the billing and payment processes, reducing the number of problems, improving retention and increasing the acquisition of new customers through recommendations, lenders may generate increased annual profitability of approximately $30 million for every 1 million loans serviced,” said Clancy.
The 2008 Primary Mortgage Servicer is based on responses from 10,241 home owners regarding their experiences with their primary mortgage servicer. The study was fielded in July 2008.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on boat ratings, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com/.
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No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate
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