SunTrust ranks highest on J.D. Power study
By MortgageDaily.com staff
8/8/2005

A recent study that looked at how well mortgage servicers treat their borrowers found online customers were the most satisfied. But customers struggling to understand inarticulate service representatives were not so satisfied.

Atlanta-based SunTrust Mortgage ranked highest in J.D. Power and Associates' 2005 Primary Mortgage Servicer Study announced last week. Based on the responses of over 9,200 borrowers, the study measured customer satisfaction amongst the nation's largest servicers in four primary areas: billing, payment, annual account review/administration, and customer-initiated interaction.

World Savings Bank, Bank of America and Countrywide Home Loans respectively followed SunTrust in the ranking.

SunTrust performed "particularly well" in the areas of billing, payment and annual account review/administration, J.D. Power said.

The billing and payment factors are the two most important and highest-rated aspects of the customer experience with servicers, and within these areas, borrowers value most the accuracy of posting payments as well as the variety of payment options, the marketing information services firm reported.

It was also found that only 20 percent of the respondents paid their mortgage online, but those who did or paid through automatic deductions rated their lenders significantly higher overall than those who paid by mail or phone. Additionally, although only 6 percent of the borrowers took advantage of receiving an online bill notification, they were among the most satisfied with servicers overall, according to the announcement.

"In our increasingly electronic world, consumers are always looking for ways to save time in paying their monthly bills," said Jeremy Bowler, J.D. senior director of the finance and insurance practice, in the announcement. "However, more customers say they would like to pay or receive their mortgage bill online than actually do so, despite existing options available to most borrowers. Given the high impact that the perception of payment options has on overall brand impression, increasing customer awareness of payment options is an area of opportunity for servicers to distinguish themselves in the marketplace."

The study also reportedly found that more than one out of every 10 borrowers who had contacted a lender's service representative did not speak clearly.

"By far the most common cause of this complaint is poor articulation of words," Bowler said. "Customers who had difficulty hearing what the service representative was saying rated their experience very poorly -- more than 300 index points lower than those customers who indicate they had no difficulties comprehending the representative they spoke with."

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