Mortgage services have a problem; customers lack trust in them according to a new report.
The JD Power survey of US mortgage servicers has found that consumer trust is lower than any other industry sector that the firm studies.
Partly, this is because customers often don’t choose these servicers, they are acquired when the servicers purchase loans in the secondary market; but there is also another issue affecting the industry.
The drive towards greater efficiency and cost savings among the mortgage servicing industry has led to less focus on customer service, the report says.
"Mortgage servicers are really missing an opportunity to build the kind of goodwill with their customers that has proven to translate directly to increased advocacy and repeat business,” said John Cabell, Director of Wealth and Lending Intelligence at J.D. Power. “The industry’s laser focus on lowering costs, managing regulatory compliance and minimizing delinquencies has come at the expense of customer experience. It is negatively affecting customer trust in their brands.”
Trust, digital, and goodwill
The issues that mortgage servicers have are broadly in three areas.
More than two-thirds (70%) of customers do not have complete trust in their primary mortgage servicer, leading to lower customer satisfaction ratings.
The digital experience is lacking with 60% of customers accessing information via their mortgage servicer’s website and just 31% accessing information via mobile, both of which lag other financial sectors in retail banking. For those that do use these channels, satisfaction is higher, highlighting the importance of good online experience for customers.
Finally, when transferred to a new servicer many consumers report issues with payments and escrow accounts. 54% of first-time home buyers say they are confused, angry or irritated when transferred.
