J.D. Powers lists top consumer-rated lenders for 2018
NEW YORK – Nov. 14, 2018 – Which mortgage lenders receive the best ratings from consumers?
According to J.D. Powers, the top scoring lenders are USAA (891 score) and Navy Federal Credit Union (888 score), but they weren't included in the overall ratings list because they "do not meet the study award criteria."
Of those lenders who did meet the criteria, Quicken Loans ranks highest in customer satisfaction for the ninth consecutive year, according to the 2018 U.S. Primary Mortgage Origination Satisfaction Survey.
Overall, customers were happier with their mortgage lender this year compared to last year, and a lot of that increase appears to be due to lenders' use of more digital interactions in the process, according to the survey, which is based on responses from more than 5,000 customers who took out new mortgages or refinanced within the last 12 months.
"The mortgage marketplace is changing rapidly as traditional players and new digital-native entrants ramp up their digital and mobile offerings," says John Cabell, financial services practice lead at J.D. Power. "While improved digital offerings are helping mortgage originators build customer satisfaction, it is important to find the right balance between digital self-service offerings and personal interaction with a representative. Technology alone is not a magic bullet in this market; the key is knowing where to leverage it and where to layer in more traditional forms of one-on-one support."
Lenders whose customer-satisfaction scores improved most year-to-year include: Quicken Loans, Fairway Independent Mortgage, Guild Mortgage and Mr. Cooper.
Additional survey findings
- Satisfaction improves with digital integration. More customers are using digital and mobile channels to connect with lenders. Customers use an average of 3.1 different channels during the mortgage process, with the phone leading at 72 percent, followed by websites (69 percent) and email (58 percent).
- Representatives are still key players. Only 3 percent of mortgage customers say they rely only on digital self-service channels in the origination process. Customer satisfaction is highest among customers who spoke with their lender in person or over the phone when applying for a mortgage, followed by those who used a combination of personal and self-service tools. Consumers say that representatives provide the greatest value by following up after initial inquiry and also confirming loan terms and payment.
- Fast replies are critical. Satisfaction is also highest among customers who received contact within one day of their inquiry. Satisfaction drops the longer customers have to wait for a response.
The average industry score for all rated lenders was 836.
J.D. Power's 5-star lenders for customer satisfaction
- Quicken Loans – 876 score
- Fairway Independent Mortgage – 873
J.D. Power's 4-star lenders for customer satisfaction
- Guild Mortgage Company – 857
- PrimeLending – 850
- Bank of America – 849
- LoanDepot – 847
J.D. Power's 3-star lenders for customer satisfaction
- Fifth Third Mortgage – 843
- CitiMortgage – 840
- Caliber Home Loans – 836
- PNC Mortgage – 835
- Chase – 834
- SunTrust Mortgage – 827
- Mr. Cooper – 823
J.D. Power's 2-star lenders for customer satisfaction
- Wells Fargo Home Mortgage – 817
- Guaranteed Rate – 812
- PennyMac – 812
- Freedom Mortgage – 811
- BB&T – 809
- Flagstar Bank – 787
- Ditech – 786
- U.S. Bank Home Mortgage – 785
Source: "Mortgage Customer Satisfaction Increases as Digital Plays Larger Role, J.D. Power Finds," JDPower.com (Nov. 8, 2018)
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