Real estate agents are finding generational shifts that have changed the way they do business, and now those some trends may be finding their way to the mortgage industry as a recent survey from J.D. Power has signaled that customers have reported “significant declines” in satisfaction this year after several years of steady improvement.
According to a CNBC report, the slide was driven by a notable increase in the number of customers saying that their mortgage servicer is focused more on profit than customer experience, a tide that may be driven by younger buyers.
The results may be a result of millennial buyers, who stress experience in everything that they do. Many respondents indicated that their mortgage servicer is focused more on profit than customer experience. The survey found that 10 percent of the respondents indicated “their time was wasted during interactions with their mortgage servicer.” Satisfaction was higher, however, among those who used the servicer’s website or mobile app.
Craig Martin, senior director, mortgage practice at J.D. Power, pointed out that lenders are working with more with millennials entering the market for the first time. It is their first experience and they are expecting transparency, expertise and personal interaction.
“Everyone thinks that about millennials, that they’re all tech all the time, but the truth is their heavy online reliance is research-based, but they’re also using in-person and calling channels more often than not for mortgage originations. They are oriented toward that expert and advisory piece.”
Quicken Loans may be perfectly positioned with its business model to meet the needs of millennial buyers. The company has been ranked No. 1 in customer satisfaction four years in a row and tops the list now. Martin notes the company has a customer-oriented model. While customers can’t walk into a Quicken Loans branch, they seem to appreciate the online and phone service that they receive.
Martin also pointed out that the shift in customer satisfaction could be a result of a change in the types of loans that are being originated in today’s mortgage market.
“It’s less about what the servicers are doing and more about the market conditions. Now that the refinance boom has dropped off, there is a lift in purchase loans and a lot more first-time buyers. You have a new set of expectations.”
The mortgage industry now is finding out what real estate agents have known for a long time: Younger buyers have very different expectations than previous generations.