According to the 2010 US Primary Mortgage Origination Satisfaction Survey by J.D. Power and Associates, Bank of America tanked in their customer satisfaction. The study was fielded in July and August and used 3,401 consumers applying for new mortgages, and on a satisfaction scale of 1000, Bank of America scored 676; best scored Quicken Loans was 150 points more.
While it is most important now for banks to use a more cautious approach when underwriting mortgages, the more requests and the more times consumers are asked to resubmit information, the less satisfied customers get. Right now banks are creating negative feelings throughout the entire lending industry.
Consumers were measured in four different areas:
1. Application and approval
2. Loan officer/Mortgage broker
The application process is longer and approval time for a loan has increased to 27 1/2 days; up from 20 days last year. From the beginning of the application, if you started the origination process today, it would now take 52.1 days to close as opposed to 46.9 days in 2009. It now takes longer to get approved despite the latest guidelines affecting the Real Estate Settlement Procedures Act (RESPA) guidelines.
David Lo, Director of Financial Services at J.D. Power stated that although processing times negatively influence a customer's experience with banks, there are certain factors that make a positive impact on customers.
So what makes a positive impact on banking customers despite the long wait for approvals? To begin, customers want to know the progress of their loan applications. They want to be informed, and want "proactive updates." Consumers want to have their loans acknowledged; they want to receive a "welcome." Loan officers and mortgage brokers should be able to explain the different products to customers and ensure that customers understand. Reading applications can be a very tedious process, and very few people ever turn to an attorney for advice when applying for a mortgage. Finally, customers want to close on time; delays cause bad feelings, stress, extra moving charges, and more inconveniences.
On the satisfaction scale, Quicken Loans did the best with a score of 826 followed by MedLife Home Loans, and PNC/National City Mortgage. Wells Fargo ranked eighth with an index of 758.