Quicken Tops, B of A Worst, in New J.D. Power Origination Poll

Mortgage & Real Estate

Quicken Loans received the highest customer satisfaction score in this year’s J.D. Power and Associates 2011 Primary Mortgage Origination Satisfaction Study, while Bank of America — the poster child for consumer missteps — received the lowest.

But the results need to be taken in context, explained David Lo, director of financial services at J.D. Power. The survey universe includes only consumers who were able to obtain a loan — either for a purchase or a refinance.

The study measures customer satisfaction in four key areas of the origination experience: application/approval process; loan officer; closing; and contact.

JDP measures customer satisfaction on a 1,000 point scale. In 2011 customer satisfaction averaged 747, a 13 point improvement from the year before.

According to Lo, the increase in origination satisfaction is in stark contrast to its servicing poll, which was released in early 2011. In that study JDP found that many mortgagors were discontented with their provider because they could not obtain credit, and underwriting standards were tight.

“They are stuck in their mortgage and they are not happy about it,” he said.

Looking at a three-year trend, companies that improved their customer satisfaction scores also saw their market shares rise – some by as much as 5%.

Those at the other end of the scale, Lo noted, saw a decrease in market share by 5%.

He added there are other factors that affect market share, such as B of A pulling out of the wholesale and correspondent channels.

But in general, a higher satisfaction rate with the institution (including other products it offers) equates to higher loyalty by its customers, Lo added.

Daily Briefing | Thursday, November 17, 2011

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