Industry News

Closing mistakes cost lenders repeat business

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Nearly one in three borrowers taking out a new mortgage in 2006 experienced problems during the origination process, including errors in closing documents, miscommunication of loan terms, or an unresponsive or unavailable loan consultant or mortgage broker That's according to a new survey of 4,115 borrowers who originated loans in the first nine months of the year by J.D. Power and Associates. The market research firm said customer satisfaction is important to mortgage lenders because customers from the five highest-ranking lenders make 20 percent more referrals and are "significantly more likely" to do repeat business with their existing lender. Although interest rates, fees and closing costs drove the selection of lender for 28 percent of those surveyed, 17 percent said their previous or existing relationship with a lender was a "strong motivator." Refinanced mortgages accounted for 45 percent of the loans in the survey, with nearly 70 percent of borrowers refinancing w...