Slower Mortgage Closings Push Borrower Satisfaction Lower

November 18, 2010 No Comments »

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Customer satisfaction dropped as the time it look from mortgage application to closing increased, according to the latest survey from J.D. Power and Associates.

The survey looked at four key components of the loan origination process, including application/approval process, loan officer/mortgage broker, closing, and contact.

It found that the time from application to approval increased to 27.5 days in 2010 from 20 days last year.

As a result, the entire mortgage origination process increased to 52.1 days this year from 46.9 days in 2009, pushing overall satisfaction down to 734 from 739 last year (based on a 1,000-point scale).

Online Mortgage Applications on the Rise

The study also found that more borrowers are turning to the Internet for mortgages – nearly 20 percent of customers went online to start the mortgage application process this year, up from 14 percent in 2009.

And just 29 percent of customers started the mortgage application process in person this year, down from 33 percent in 2009.

Additionally, only half of customers said they met with their loan officer or mortgage broker in person during the mortgage origination process, down from 57 percent in 2009.

Quicken Top Lender in Terms of Satisfaction

Quicken Loans ranked top in customer satisfaction, beating out MetLife Home Loans and PNC/National City Mortgage.

Bank of America, which scooped up now defunct mortgage lender Countrywide a few years back, ranked last.

Best practices for satisfaction included keeping borrowers in the loop with status updates, avoiding asking for the same information more than once, and closing on the promised date.

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