Mortgage servicers often are "not delivering" key best practices such as providing transparency around fees during the loan modification process compared to when they originate loans, according to a new study from J.D. Power and Associates.
The research firm found that mortgage bankers frequently fail to provide and meet a time frame for approval, ask for information more than once, and do not explain the entire process during the application stage.
Lender/servicers also do not give proactive status updates, the firm said in its U.S. Primary Mortgage Servicer Satisfaction Study.
The company found that only 28% of customers were asked to provide information more than once during the mortgage origination process, compared with nearly 80% of customers during a loan modification situation.
The key service practices that have a strong positive impact on customers include fee transparency, which means communicating "all fees in a concise way to ensure complete understanding and no surprises," the company said.
The 2010 U.S. Primary Mortgage Servicer Satisfaction Study is based on responses from 4,516 homeowners regarding their experiences with primary residential servicers. The study was fielded from May through June 2010. J.D. Power measures customer satisfaction using five mortgage data points: fees, billing and payment process, escrow account administration, website, and phone contact.
