Borrower satisfaction with servicers has increased over the past year, and technology played a role in the improvement. One factor that can substantially improve satisfaction is communication with new borrowers. A relatively new player in the servicing arena has ascended to the top of the heap, while three of the fastest-growing companies were at the bottom.
The mortgage servicer satisfaction index landed at 754 for this year. The scale for the servicer index ranges from zero to a thousand.
Compared to the previous year, the index for residential loan servicers has risen 21 points. The increase was attributed to improvements in technology.
Those findings were outlined in the J.D. Power 2014 U.S. Primary Mortgage Servicer Satisfaction Study. The study reflects responses from 5,120 borrowers who were surveyed in April and May.
The report analyzed borrower satisfaction with billing and payment process, escrow account administration, website, and phone contact.
Technology advances have helped simplify and streamline the servicing experience.
The most progress was made with distressed borrowers, with the satisfaction index jumping 42 points to 703 for this category.
“Satisfaction is improving, specifically among those customers having a hard time paying their bills, primarily because lenders are improving the experience by making it easier for them to use the website or their smartphone to make payments, resolve problems or get answers to their questions,” J.D. Power Director of Mortgage Practice Craig Martin said in the report. “As more consumers use smartphones and tablets and younger tech-savvy borrowers begin to buy homes, the desire to use online and mobile channels will inevitably increase.”
In addition to more frequent monitoring of their accounts, distressed borrowers use the mobile channel to review statements 8 percent of the time versus the industry average of 3 percent. Borrowers who use mobile devices to access statements did so an average 28 times during the prior 12 months, far more than the industry average of 13 times.
Another finding was that distressed borrowers most often used their servicer’s website to view monthly billing information, while non-distressed borrowers most frequently used it to review their payment histories.
J.D. Power noted that borrowers with poor credit struggled more than their prime counterparts at utilizing website features.
Servicer satisfaction scores were 105 points higher when borrowers were able to find answers to questions and other information online than for servicers whose customers had to resort to another communication channel.
Interestingly, 38 percent of borrowers who contacted customer service first visited servicers’ websites.
Satisfaction rose considerably for servicers who reached out to new borrowers. Average satisfaction scores for new borrowers who received a welcoming telephone call was 832. Scores progressively declined for borrowers who received a welcome email, welcome packets and an introduction letter. Borrowers who receive no introductory communications had the lowest average score:Â 640.
The servicer with the highest score — 835 –was Quicken Loans Inc. The Detroit-based company, which made its debut on the ranking this year, has seen its servicing portfolio soar from 2011 — when it reported no portfolio — to nearly $150 billion as of June 30, 2014.
Quicken reportedly performed well in all four categories. The online lender has topped J.D. Power’s Primary Mortgage Origination Satisfaction Study each of the past four years.
Chase Mortgage landed the No. 2 spot with a score of 782, followed by Regions Mortgage, Wells Fargo Home Mortgage and BB&T.
At the bottom of the list were three of the fastest-growing mortgage servicers:Â Ocwen Loan Servicing, Nationstar Mortgage and Walter Investment Management Corp.-subsidiary Green Tree Servicing — which had the lowest score of 642.
