CINCINNATI--(BUSINESS WIRE)--Fifth Third Mortgage Company ranks second among all major mortgage originators in overall customer satisfaction, according to the newly released J.D. Power 2015 U.S. Primary Mortgage Origination Satisfaction Study.
Fifth Third moved up five positions from its No. 7 spot in 2014, increasing its satisfaction scores in most areas. It jumped 33 points, compared to the industry average of 7 points.
"We keep the customer at the center of everything we do," said Chad Borton, executive vice president and Head of the Consumer Bank, Fifth Third Bancorp. “The study reinforces what we know is important to our customers – keeping them updated on their loans, resolving any concerns quickly, and working as a team to ensure our customers get the best service.”
The study measured customer satisfaction with the mortgage origination experience in six factors: application/approval process; interaction; loan closing; loan offerings; onboarding; and problem resolution. Overall mortgage customer satisfaction has increased this year in the industry as lenders have focused on developing functional digital channels and improving operational efficiency, according to the study.
Fifth Third ranked second with a score of 812 out of 1,000. Overall industry customer satisfaction with mortgage origination averaged 793 in 2015. This increased 7 points from 2014.
Fifth Third’s highest increase came in the application/approval process. The Mortgage Company’s satisfaction rate increased 57 points, compared to the industry average increase of 22.
The increase in overall satisfaction in the industry was driven by this 22-point gain in the application and approval process factor. When loans closed earlier than promised, satisfaction was significantly higher compared to when loans closed as expected. This is particularly important with the new TILA- RESPA Integrated Disclosure, which went into effect in October. The new disclosure, also known as the “know before you owe” regulation, created similar disclosure documents for the loan estimate and the closing document, making it easier for consumers to read and compare. The disclosure also has the potential to increase the mortgage timeline, as any changes of substance require a three-day review.
“It’s all about giving people choices at the right time, and time to make choices,” said Michelle Van Dyke, President of Fifth Third Mortgage Company.
Her mortgage team is explaining the changes to consumers before the loan process begins, updating them at each step.
“That way, there are no surprises and customers know exactly what’s coming next,” Van Dyke said. “The new regulations are good for the customer, helping them see the data easier and making the entire process more transparent.”
Fifth Third Mortgage Company ranks 37th among the nation’s mortgage lenders. The Mortgage Company services more than $75 billion in loans and has 900 employees.
Other key findings from this year’s J.D. Power study:
Millennials Seek Guidance: With millennials now accounting for the largest share of the loan originations in the last two years, it is notable that nearly four in 10 millennial customers indicate that the origination process was not completely explained to them, and 58 percent indicated their options, terms and fees were not completely explained.
Effective Loan Representatives are Vital: Loan representatives who engage customers, build trust and ensure that borrowers understand each step of the process can mitigate the negative impact on satisfaction due to missing closing dates.
Communication Impacts Satisfaction: Communication throughout the loan process mitigates dissatisfaction with a longer timeline. When the loan process takes more than two months, satisfaction is 686. However, when an accurate time frame is estimated and proactive updates are provided in the same scenario, satisfaction is 859.
The study is based on responses from 4,666 customers who originated a new mortgage or refinanced within the past 12 months.
About Fifth Third:
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $142 billion in assets and operates 1,299 full-service Banking Centers, including 101 Bank Mart® locations, most open seven days a week, inside select grocery stores and 2,630 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. Fifth Third also has a 22.8 percent interest in Vantiv Holding, LLC. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2015, had $304 billion in assets under care, of which it managed $27 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth Third's common stock is traded on the Nasdaq® Global Select Market under the symbol "FITB." Fifth Third Bank was established in 1858.
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