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Best and worst lenders

By Polyana da Costa · Bankrate.com
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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30 Comments
A C (LO) Godsey
November 15, 2013 at 3:54 pm

I would like to refinance my loan on which I have never had a late
payment, am three months ahead on payment, and the balance is
less than one half of the purchase price. If anyone can name a
company that will give a solid price for closing,i e, one that remains
the same from quote to closing, I would certainly appreciate it.

Peter
November 15, 2013 at 3:53 pm

Quicken Loans is a RIP OFF!!!!! They told me they would drop PMI after six months. Ten years later. I still have it.

John
November 15, 2013 at 3:30 pm

Surely Ocwen and America's servicing company should be in the most despised.
I defy anyone to come up with a story of a good experience with these two companies.
We were strung out for six months on a modification, until they told us we couldn't afford a lower payment.
They charged us every month we were in a chapter 13 bankruptsy to see if we still lived there, and when we finally paid them off, they had almost five thousand dollars of "legal fees" for accepting our payments during the bankruptsy. What crooks! Borrow 103,000 and pay $1100 a month for three years, and still owe then 102,660. Fees and charges out the a**.
They should all be in jail with the rest of the grand theft felons.

rosemary mackall
November 15, 2013 at 3:26 pm

I have a loan that started with Quicken Loan. They sold it to Countrywide and then to Bank of America but said they would always oversee the loan.
They contacted me last year about refi for my loan, told me what the payments would be,etc and sent a man for appraisal. Then said I didn't qualify because it is a manufactured home. I said it is on a foundation and was when you first loaned me money for the house ten years ago.. They said it didn't matter, they made a mistake, and I am stuck with a 6.5 interest rate for ten more years because they say they can not refi now. I hate Quicken Loan!

PB
November 15, 2013 at 2:34 pm

Suntrust is absolutely the worse bank... The left hand doesn't know what he right is doing and really does not care. You can not find anyone at Suntrust that can make a decision without someones approval... It feels like everyone there is afraid of their job...You can speak with one department on their policy and then get a call from another department..within their system and they want to know why you are doing what you are doing..Inferior quality for sure!!! Never again will they get my business. You have been warned..

Robert
November 15, 2013 at 1:45 pm

My wife and I tried a refi through Quicken Loans. It was a miserable failure as they have no idea what the heck they are doing. They would only communicate through "snail mail" and by the time we got the information it was already late. Don't try Quicken. It will be a quick way to foreclosure.
We had also tried to HARP a loan a few years back through our, at that time, mortgage holder - Wells Fargo. After following their instruction to the letter they foreclosed on us and it took $13K to reinstate. And the foreclosure is still on our credit report despite getting a meager $800.00 settlement from them. These mortgage companies are a bunch of thieves and, generally, morons.

Jennifer
November 15, 2013 at 1:43 pm

Maurice, rates are not general and are based on property type, occupancy, loan limits, loan to value, credit score, etc. There are many products and variables in quoting rates. In the last few years lenders aren't comfortable quoting rates unless they know you're qualified for the loan and/or want to make sure they are finding the best product to fit your needs. It's for your own protection. Don't fight the process and provide the lender with the information they need in order to help you.

Jim
November 15, 2013 at 1:24 pm

Craig, you should try using spell check!

craig
November 15, 2013 at 12:18 pm

Maurice: Your comment is poorly written and you have not possed a question. Was your comment intended to solicite information on getting a quote? Try again. You might try not using all caps next time.

MAURICE CHEVALIER
November 14, 2013 at 8:03 pm

I AM WANTING TO INVEST IN REAL ESTATE IN THE KITSAP COUNTRY
AREA OF WASHINGTON STATE. EVERY TIME I LOOK TO GET THE INTEREST
RATE FROM THE LENDERS I AM QUOTED RATES FOR OWNER OCCUPIED PROPERTY. THEN IN ORDER TO GET AN INVESTORS RATE, I HAVE TO
PROVIDE ALL SORTS OF FINANCIAL INFORMATION,GIVE MY SSN# AND
GO THROUGH THE ENTIRE APPLICATION PROCESS AND GET APPORVAL
BEFORE I CAN GET A "RATE".

YOUR RESPONSE IS GREATLY APPRECIATED.

THANK YOU
MAURICE

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