Industry NewsMortgage

J.D. Power survey: Lenders stumble on loan mods

Consumers rate loan servicers

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Mortgage lenders tend to do a better job providing customer service when originating loans than modifying them, according to a survey by J.D. Power and Associates.The market research firm asked 4,516 homeowners about their experiences with their primary mortgage servicer, and found that when providing loan modifications, servicers were less likely to provide timeframes for approval and to meet them than when originating loans.Servicers working on loan modifications were also more likely to ask for information more than once, and less likely to explain the process at the time of application and to provide status updates.The survey measured customer satisfaction in five areas of mortgage servicing: fees, billing and payment, escrow account administration, website, and phone contact.Among the 19 servicers rated in the survey, Branch Banking and Trust Co. (BB&T) received the highest customer satisfaction score -- 795 on a 1,000-point scale. Six loan servicers scored below the industry ...