Mortgage servicers are earning higher marks from homeowners even while a growing share of borrowers report financial stress, rising escrow payments, and concerns about foreclosure.
Overall satisfaction with mortgage servicers increased 11 points this year to 607 on a 1,000-point scale, according to the 2026 J.D. Power U.S. Mortgage Servicer Satisfaction Study. Improvements in digital experiences, communication about escrow and fees, and issue resolution helped drive the increase.
Those gains come amid deteriorating borrower finances. Only 41% of surveyed borrowers were classified as financially healthy, down from 52% in 2022. Nearly six in 10 were considered financially vulnerable, stressed, or overextended.
“The servicing industry is entering a trust economy where the customer relationship after origination is more important than ever. In a locked-in housing market, mortgage servicers are increasingly succeeding at the moments that matter most by building trust through stronger communication, more transparency and improved digital experiences,” said Bruce Gehrke, senior director of lending intelligence at J.D. Power. “The opportunity now is to turn higher satisfaction into lasting customer loyalty and retention. Servicers that continue to support customers through financial uncertainty and deliver a trusted experience will be best positioned to earn their business when the market shifts.”
Borrowers Report Greater Financial Pressure
J.D. Power found that 16% of borrowers incurred a mortgage late fee during the previous 12 months, up from 14% four years ago.
The share of borrowers who believe they are at risk of foreclosure also rose sharply, reaching 30% compared with 17% four years earlier. That figure reflects borrowers’ perceptions of their financial risk, rather than a measure of actual delinquencies or active foreclosure proceedings.
J.D. Power determines consumers’ financial health using a combination of their spending-to-savings ratio, creditworthiness, insurance coverage, and other financial safety-net measures.
The findings suggest that stronger satisfaction scores should not be interpreted as evidence that servicing portfolios are free from stress. Instead, servicers are improving the customer experience while many homeowners contend with mounting household expenses and fewer opportunities to refinance or move.
Escrow Becomes A Test Of Borrower Trust
Escrow communication has become a particularly important part of the servicing relationship as property taxes and homeowners insurance premiums increase.
Among the 75% of surveyed servicing customers with escrow accounts, 58% said their escrow payment increased this year. Although J.D. Power found that servicers have improved the clarity of their communications, many customers still need better explanations and tools to understand why their payments changed.
Clear explanations can have a significant effect on customer trust. Borrowers who received clear information about basic servicing fees were 35 percentage points more likely to give their servicer an “excellent” or “perfect” trust rating. They were also 33 percentage points more likely to say they would definitely use the lender again.
That relationship carries added importance in the current rate environment. Eighty-six percent of borrowers said they probably or definitely would reuse their current lender. The same percentage said they had not explored refinancing or other borrowing alternatives during the previous 90 days.
For mortgage companies attempting to preserve recapture opportunities, the findings indicate that the borrower relationship between transactions may help determine who receives the first call when rates fall or a homeowner needs another lending product.
Customer Service Drives Exit Risk
Self-service capabilities and customer service each were cited by 62% of respondents as leading reasons to remain with a servicer. Easy payment options followed at 61%.
Conversely, 43% identified poor customer service as a reason they would consider switching. High interest rates were cited by 33%, while difficulty using self-service tools was cited by 20%.
The study evaluates the servicing experience across six dimensions, listed in order of importance: trust, ease of doing business, information and education, people, problem resolution, and digital channels.
Chase ranked highest among mortgage servicers with a score of 694. Rocket Mortgage followed with 690, while Bank of America placed third with 672.
The 2026 study was based on responses from 14,118 customers who had been with their current mortgage servicer for at least one year. It was fielded from May 2025 through May 2026.
*This article was primarily written by a human author. AI tools were used in a limited capacity for research assistance or light editing.
