Mortgage servicers this year have successfully fought back the headwinds of persistently high interest rates and financial uncertainty to drive improvements in overall customer satisfaction. Still, significant risks loom on the horizon, according to the 2024 U.S. Mortgage Servicer Satisfaction Study by JD Power. The study, released at the end of July 2024, was fielded from May 2023 through May 2024.
The servicer satisfaction study measures customer satisfaction with the mortgage servicing experience in six factors, ordered by importance: level of trust; makes it easy to do business with; keeps me informed and educated; people; resolving problems or questions; and digital channels. The study is based on responses from 15,020 customers who have been with their current mortgage loan servicer for at least one year.
Rocket Mortgage ranks highest among mortgage servicers with a score of 713. Regions Mortgage (678) ranks second and Chase (676) ranks third.
Overall, mortgage servicer efforts to improve digital experiences and streamline problem resolution have helped drive incremental improvements in customer satisfaction, but the overall financial health of borrowers has declined sharply and an increasing number of borrowers are paying their bill after the due date.
One of the key findings of the study was the sharp decline in borrowers’ financial health. Just 41% of borrowers are currently classified as financially healthy, down from 46% in 2023 and 52% in 2022. Conversely, the percentage of at-risk borrowers is now 19%, up from 17% in 2023. Overall, satisfaction scores among financially unhealthy borrowers are, on average, 117 points lower than among financially healthy borrowers.
The second major finding was the rise in escrow costs and borrowers needing guidance. Escrow costs—the fees typically rolled into a mortgage to pay annual property tax and homeowners insurance bills—are rising nationwide, with 56% of borrowers experiencing an increase in escrow costs this year. Overall satisfaction is 62 points lower (on a 1,000-point scale), on average, among those who experienced an escrow cost increase than among those who experienced no change.
Among those borrowers whose escrow costs increased, overall satisfaction is higher among those who say they had access to tools/information on escrow from their servicer than among those who say they were not aware of such tools.
However, the overall satisfaction with mortgage servicers improved from 2023 to 2024. The overall customer satisfaction score for mortgage servicers is 606, up 5 points from 2023. Improvements in problem resolution and satisfaction with digital channels are the primary drivers of this year’s higher scores.
Although satisfaction with the look and feel of mortgage servicer websites and apps improved this year, borrowers say the phone is still the most likely customer service channel to drive a successful outcome, and 29% of borrowers still considered this the easiest channel to use. Among those who had a problem, just 49% said their initial contact was calling customer service.
