Industry News

Consumers prefer mortgage brokers over direct lenders

Study shows brokers meet expectations

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Slightly less than a third of mortgage shoppers used a broker to help them find their current mortgage, but those customers who do tended to be very satisfied with their lending experience, according to the J.D. Power and Associates 2005 Home Mortgage Study. Among consumers who responded to the survey, 29 percent said they contacted a mortgage broker. They tended to be substantially more satisfied with the broker personnel compared with those who worked directly with the lender's personnel. "Brokers appear to perform significantly better in meeting customer expectations," said Jeremy Bowler, director of the finance and insurance practice at J.D. Power and Associates. "Brokers are perhaps more dependent on customer referrals than the direct lenders. As a result, brokers may be more in tune with the cause and effect of customer satisfaction and advocacy." However, those customers who contacted a broker while shopping but then applied directly to an originating lender appeared to be the...