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Satisfaction Off at Best Mortgage Servicers

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Two of the residential loan servicers that are considered to be among the five best saw borrower satisfaction erode this year. But the other three improved their standings.

The industry average score in the
2017 U.S. Primary Mortgage Servicer Satisfaction Study came in at 754 based on a 1,000-point scale.

Servicers lost ground this year compared to 2016, when the average score for the group of biggest mortgage servicers was 755.

The study was produced by J.D. Power and announced on Thursday. It measures customer satisfaction based on six factors: new customer orientation, billing and payment process, escrow account administration, interaction, mortgage fees and communications. 

“The decline in brand perceptions is driven primarily by a significant increase in the number of customers indicating that their mortgage servicer is focused more on profit than on their customers, which could have long-term effects on future business,” the report said.

With a score of 840, Quicken Loans Inc. ranked highest among all servicers for the fourth year in a row. Still, its score fell short of 850 earned last year.

Detroit-based Quicken previously reported a $251 billion mortgage servicing portfolio as of March 31.

No. 2 on this year’s ranking was
Regions Mortgage. The company’s score was 819, improving from 810 in 2016. Regions Financial Corp. said in its first-quarter earnings report that it serviced $31 billion for third parties.

Next was The Huntington National Bank, where its index tumbled to 795 from 828 a year earlier. As of mid-2017, the Columbus, Ohio-based bank says it serviced $19 billion in mortgages for investors.

Capital One Financial Corp.’s score of 792 landed it in fourth position this year. The score improved 12 points from last year.

No. 5
  in 2017 was BB&T Corp., which lifted its score to 790 from the preceding year’s 769. BB&T’s total servicing portfolio was $120 million at the end of the first-half 2017.

Craig Martin, who is senior director of the mortgage practice at J.D. Power, offered some advice to the nation’s servicers of single-family loans.

“Based on our research, mortgage servicers have three very clear areas of opportunity to help drive success: effective onboarding, high-functioning self-service tools and call center best practices that optimize customer contact in step with changing customer demographics and needs,” Martin stated.

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