Mortgage Lenders Have Work To Do When It Comes To Customer Service, Survey Says
The American Customer Satisfaction Index reported mortgage lenders rank in the bottom nine among ACSI-measured industries.
In the inaugural American Customer Satisfaction Index (ACSI) results, released today, mortgage lenders come up short-handed for customer satisfaction with a debut score of 75, placing the industry on the lower end of the Index overall, which is measured on a scale of 0-100. Mortgage lenders join the bottom nine ACSI industries, tied with energy utilities, gas stations, and hospitals.
Among individual lenders, however, a wide 10-point ACSI performance gap shows that some companies can deliver when it comes to satisfying customers despite a challenging lending environment. In particular, Rocket Mortgage took the top spot with a high ACSI score of 80 due to "excelling in loan processing time" and the lowest percentage of complaining customers compared to the other lenders in the study.
Chase followed closely with 78, while Bank of America, U.S. Bank, and Wells Fargo each scored 77. At the lower end, PennyMac trailed with a score of 70, ten points behind the leader.
Per the methodology, the ACSI Insurance and Mortgage Lenders Study 2024 is based on 14,855 completed surveys by random customers who were contacted via email between October 2023 and September 2024. Customers were asked to evaluate their recent experiences with the largest companies in terms of market share, plus an aggregate category consisting of “all other” companies.
U.S. mortgage originations hit a high of $4.51 trillion in 2021, ACSI reports in its study, before falling sharply to $1.50 trillion by 2023. The first half of 2024 shows a slight rebound, though still on par with 2023 levels. Despite declining mortgage rates throughout 2024, many potential homebuyers are waiting for further rate drops, making it tough for mortgage lenders to maintain high customer satisfaction.
The ACSI identified that customer complaints have a significant impact on satisfaction levels. On average, 26% of customers report filing a complaint with their lender. Satisfaction among those who had no complaints stands at 78, which is 12 points higher than the score of 66 for those who did. Lenders with fewer complaints generally see higher satisfaction rates.
Overall, lenders excel at providing digital channels, as customers report feeling comfortable interacting with their lenders online. Mobile apps performed well in the survey, scoring 82 for quality and 80 for reliability, while websites scored 81, making these the most positive aspects of the customer experience. However, online tools continue to leave room for improvement, particularly in ease of use (75) and visual appeal (74).
The mortgage process itself — from understanding next steps, loan officer responsiveness, and processing time — earned moderate ratings in the upper 70s. Not surprisingly, customers rate interest rates (71) and fees and costs (68) as the most frustrating parts of the experience.