It was easy to focus on getting borrowers the lowest rate during the refinance boom, but that short-term view may have reshaped how customers experience the mortgage process.
J.D. Power’s annual consumer satisfaction survey found borrowers now see little difference between lenders.
“The problem that lenders have is how do you differentiate,” said Craig Martin, J.D. Power’s head of global lending.
The top performer was Rocket, which earned 750 of the 1,000 points available. Chase Bank was a close second at 736 points, while Citibank and Fairway Independent tied for third at 733.
J.D. Power found only an 87-point difference from the top and bottom spots. Martin said that’s at least partially because lenders and originators focused on hunting for the lowest rates during the 2021 refi boom.
Homebuyers responded by viewing the rate as the most important part of the experience, he said. Originators can change that by showing their value in guiding borrowers through the current market and getting them the loan that’s right for them.
“You really want them to think about you as that — helping, enabling, and achieving that goal of finding that home,” Martin said.
He also stressed the importance of finding potential borrowers as early as possible. The J.D. Power survey found buyers who are referred by a real estate agent typically were less satisfied with the mortgage process.
Martin said that’s likely because real estate agents can set unrealistic expectations and encourage borrowers to press for faster loans and lower rates.
Another way to show expertise is by simplifying the process.
“You can have the most products and the best products, but if the customer doesn’t see the value in them, then there’s really — they’re not going to give you the credit for them,” he said.
Technology can help become more efficient, but Martin warned that it shouldn’t be a replacement for human interaction. At the end of the day, the key is human interaction.
“If you say ‘hey, i don’t want to be a coach and a guide, you know, in this challenging marketplace, then why would i choose you,” Martin said.
