TD Bank’s inaugural Mortgage Service Index designed to identify best practices and home financing risks for mortgage bankers reaffirms a number of recent findings.
Surprisingly the index shows nearly two-thirds, 64% of the surveyed 1,500 consumers who purchased homes within the last 10 years, found their most recent home buying experience to be “excellent” or “very good.” Not surprisingly, concerns remain.
The TD Bank Mortgage Service Index also found that over half of the participating consumers expect more from their lenders.
Despite that overall positive evaluation only 58% found their lender helped them understand the mortgage process, just 59% said they were kept informed throughout the process, only 61% called lender responsiveness adequate and 62% rated their lender accessible.
The index provides a detailed look into customer issues, concerns and pain points, said TD Bank’s EVP of retail lending, Michael Copley, which is useful borrower perception information for mortgage banks as the housing market continues to rebound and more borrowers become active in the marketplace.
For example, borrowers continue to experience raised stress levels. One-quarter of those surveyed found buying a home to be “extremely” or “very stressful” compared to 45% who found it “somewhat stressful.”
As shown by previous mortgage market research, direct borrower contact changes a consumer’s perception about the lender. Approximately 65% applied for their mortgage in person, while 35% applied online or over the phone, “indicating that many homebuyers continue to seek in-person discussion and council with lenders.”
Of those who cited having a good lending experience, 69% applied for their mortgage in person, while among those who cited a poor lending experience 47% applied in person, “supporting the positive impact of face-to-face interaction with lenders.”
The TD Bank Mortgage Service Index found that over half of the participating consumers expect more from their lenders.