Despite mounting frustrations among first-time homebuyers, Americans remain satisfied by and large when it comes to the mortgage origination process, according to a new customer survey. The annual study measures customer satisfaction with the mortgage origination experience across six factors, including loan interaction, and problem resolution. All things considered, mortgage finance customers in the last year rated their experience as a C-plus, according to a recent report from J.D. Power, with overall satisfaction averaging 786 on a 1000-point scale. That compares to a rating of 771 in the company's 2013 survey.
Out of all the lenders tracked in the survey, Quicken Loans topped the list in customer satisfaction for a fifth straight year. With a satisfaction score of 835, the non-bank was the only firm to earn a full five Power Circle Ratings from J.D. Power. Following Quicken were Bank of America, Chase, and U.S. Bank, all of which topped scores of 800 and earned four Power Circles.
Mortgage applications for the purchase of new homes climbed in October, pointing to a likely pickup in sales, according to a report from the Mortgage Bankers Association. The MBA released on Thursday its Builder Applications Survey for October, revealing an 8 percent monthly pickup in new home purchase applications after a flat September. Mike Fratantoni, chief economist for the group, noted that the biggest increase came in applications for higher-priced homes, while a tight credit environment continues to constrain sales at the entry level. Based on October's application data, the MBA estimates new single-family home sales for the month ran at a seasonally adjusted annual rate of 461 thousand units, reflecting a month-over-month increase of 8 and a half percent.