The J.D. Power and Associates 2011 primary mortgage servicer satisfaction study showed "frustration continues to mount for homeowners who originated their mortgages during the peak of the housing boom" and are unable to refinance despite historically low interest rates.
The survey of 4,516 homeowners measured consumer satisfaction with the billing and payment process; escrow account administration; website; and phone contact. J.D. Power and Associates said respondent satisfaction declined in all four areas from a year ago.
"Many homeowners who are still in home loans that were originated between 2006 and 2008 — when home values peaked and credit standards were the most lax — would like to refinance, but can't because they either don't have enough equity in their home due to falling home prices or their credit profile doesn't meet today's tougher standards," according to David Lo, director of financial services at J.D. Power and Associates.
The study found servicers often fail to deliver on several major best practices, including staying within an approved time frame, asking for customer information only once, explaining all of the details in full during the application process and providing homeowners with updates on the process. These all contribute to increases in time and money.
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