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Best and worst lenders

By Polyana da Costa ·
Thursday, November 14, 2013
Posted: 5 pm ET

Borrowers have become more satisfied with their mortgage lenders compared to last year, according to a survey by J.D. Power.

On a 1,000-point scale, overall customer satisfaction with loan originators improved to 771 this year from 761 last year. The survey is based on responses from more than 3,250 customers who got a new mortgage, or refinanced in the past 12 months.

Communicating better

"Two areas that improved the most were the application approval process and the closing process," says Craig Martin, director of the financial services practice at J.D. Power.

Lenders seem to be doing a better job of communicating with customers, Martin says. And the trend is expected to continue as lenders try to differentiate their services to compete for business from homebuyers, now that the demand for loans from refinancers is shrinking.

"There has been a renewed focus on the customer experience in the mortgage industry over the past few years," he adds. "Now, there's going to be a hypercompetition for a much reduced population of customers, so I think their experience will continue to improve. It's a good time to be a borrower."

Bummer over fee surprises

But there's still plenty of room for improvements, he says. That's especially true for homebuyers. About 17 percent of first-time homebuyers in the survey report they incurred additional fees at closing, compared to 8 percent of repeat buyers and 7 percent of refinancing customers.

The loan originators that ranked highest for customer satisfaction in the survey are:

  • Quicken Loans
  • BB&T
  • U.S. Bank
  • PNC Mortgage
  • Chase

The loan originators that ranked the lowest for customer satisfaction the J.D. Power survey are:

  • Fifth Third Mortgage
  • Provident Funding Associates
  • Bank of America
  • Flagstar Bank
  • PHH Mortgage

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May 27, 2014 at 9:04 pm

Avoid Fifth Third at all costs!!!!! Worst customer service ever. Charge fees for everything and then you wait on hold forever trying to resolve...

April 03, 2014 at 7:54 pm

Fremont Bank is absolutely the worst! I refinanced 3 loans with them in May, 2013. The loan officer quoted me 4% for all my 3 properties. I agreed and submit the applications. It took them 2.5 months to approve it but the rate jumped to 4.5% as the loan officer didn't lock the rates!

March 12, 2014 at 8:57 pm

Ozric --dumb comment most regulations that cause this to take so long and be complicated is due to the Govt, without it being crazy hard its to easy for consumers to commit fraud

Most people don't seem to understand how mortgages work (Molly) in general or the process of getting a mortgage.

I work for a mortgage company as a underwriter, on the inside i can tell you that we do nothing on purpose to harm people lives ect.. alot of people don't understand some things take a long time and require approval's or legal docs outside our company (modification/subordination..), also many people refuse to provide us with the documentation we need to qualify them fast and draw out the process which can cause credit reports to expire//appraisal having to be redone, updated paystubs and bank statements ---per government regulation the majority or documentation expires and has to be updated. I as a UW hate when documentation expires as it causes me to have to look at a file longer, I hate nothing more then having a file that extremely old with expired documentation.
Just be happy Fannie exists on its own and get a mortgage before the Govt (obama) closes down Fannie and gets rid of fixed rate mortgages (as they have stated they already want to do). why would they do this? as the sole owners of the mortgages (which would all be adjustable rate mortgages) the Govt who also control interest rates and would be able to raise rates at their leisure when they want some extra cash. you dont want the Govt coming anywhere near running the mortgage industry....think of any govt run function.. besides the military

February 18, 2014 at 9:26 pm

If you ask me, Amerisave Mortgage Corp. is the worst of the worst.

Might as well not bother applying with them unless you own 100% of the mineral rights under your property.

February 18, 2014 at 9:26 pm

If you ask me, Amerisave Mortgage Corp. is the worst of the worst.

Might as well not bother applying with them unless you own 100% of the mineral rights under your property.

February 18, 2014 at 5:59 am

My home renovation was about to start and decide to accept a good deal. We started the process and after 3 months when 3.5% interest was no longer locked and the bank wants to run the credit again but I had told them to forget it. I had paid $475 as GFE which paid for house appraiser but it was totally lost. I was really fed up and decide to end it up by a mortgage broker from Butler Mortgage, Ontario. It was really a good idea and within 3 weeks without any closing cost and with 3.66% we had our home renovation.

James gaffney
December 11, 2013 at 10:05 pm

Hi Neil. HARP loans have no real qualifying criteria so you may be either mistaken for the product ( a modification?) OR the loan originator had no idea what he or she was doing which is apt to happen at any bank in the country. Any readers have this issue ask for a manager after 60 days. These are simple loans and don't take but 45 days or so. 11 months is extreme and sounds like a human error. Ismall banks have liquidity issues, longevity challenges and minimal pits closing resources. Online banks are great for rate reductions but for purchases stick with a local bank who knows your market.

November 30, 2013 at 10:28 am

Can you help?

I am a Real Estate Agent in Toronto, Ontaio, Canada.

I need to find out:

Who are "Tuckernuck Mortgage Administration"?

And how to get in touch with them.

Trank you.

November 25, 2013 at 10:31 pm

I too had a mortgage with Wells Fargo for 8 years, never missing or being late for one payment. I applied for the new HARP program and the process took over 11 months of verifying, reverifying income and debt every other two weeks. I was paying $14.00 every other 2 weeks just to air mail them the same documents over and over. After repeated runarounds and never even approving nor disapproving me for the refi, I dumped Wells Fargo and chose Quicken Loans. They are absolutely the best, quick closing, honest and upfront. Do your friends, relatives and everybody you encounter a huge favor and tell them to avoid Wells Fargo at ALL costs!!! They are nothing but crooks.

November 25, 2013 at 12:28 pm

Had a Wells Fargo bi-weekly mortgage. The extra payment was taken out, but was never applied to the balance. I spent months on the phone and was told that I was mistaken, that I didn't "understand" the timing, etc. As it was, the extra was never applied. Then I got a call that I qualified for a streamlined refinance. But, since I was on time and had equity, I could have a refinance for only $4,000 in closing costs. Not much lost compared to others, but needless to say, my mortgage is now with a different company.

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