Increasingly, excellent customer service is the most important criteria in preserving satisfaction amongst servicing customers. According to a J.D. Power study, nearly two-thirds (63% ) of customers would switch mortgage servicers in order to find better/improved customer service if they could. Conversely, when overall satisfaction is above 900 points, 66% say that if they refinanced, they would do with their current servicer if possible.

J.D. Power pointed to four primary benefits that servicers receive from improving customer service:

• Complaint reduction: Enabling customers to find answers to their own questions before making a call and resolving issues on the first contact reduce the number of repeated customer contacts and escalations, which can draw the attention of regulators and other agencies.
• Cost containment and reduction: Eliminating the need for any contact and increasing the use of self-service channels can reduce customers’ reliance on the live phone channel.
• Limiting portfolio loss: Delivering a satisfying experience increases likely for customers to make timely payments.
• New business opportunities: Delivering a highly satisfying experience can lead to more new business with client partners.

 

Ways to Enhance Customer Service

The study also finds that when servicers have an easy-to-navigate website with useful information, there is a substantial reduction in calls to live agents (from 42% to 30%). Additionally, many customers want to use self-service options, with 40% saying they searched the servicer’s website before calling, thereby spotlighting the missed opportunity to solve issues in the customer’s preferred channel.

When self-service is confusing, customers experiencing a problem are highly likely to call their servicer (83%). But customers with a problem also increase the chance of public scrutiny, with 13% of such customers posting a comment on social media, according to the study.

BAI offers the following customer service recommendations:

• A monthly or quarterly statement presents a regular opportunity to provide information, answer FAQs and open a digital dialogue with the customer.
• A solid onboarding program can set appropriate expectations, clarify service channels and build dialogue.
• Regular email communication can provide highly relevant, personalized information to the customer, such as how making one extra payment can reduce principal debt and loan term by X percent.
• Regular triggered communication, such as “happy anniversary” notes, reinforce the customer relationship.

FasterCapital adds these recommendations:

Improve customer engagement: One of the most important ways to maintain customer satisfaction in mortgage servicing is to improve customer engagement. This involves keeping customers informed about their mortgage status, providing them with regular updates on their payments, and addressing their concerns and queries in a timely manner. This can be achieved through regular communication channels such as email, phone calls, or text messages. mortgage servicers can also use online portals to provide customers with access to their mortgage account information.

Provide timely, accurate billing: Customers expect their mortgage bills to be accurate and delivered on time. Any delays or errors in billing can lead to frustration and dissatisfaction among customers. Mortgage servicers should have robust billing systems that ensure timely and accurate billing. They should also have mechanisms in place to address any billing errors or disputes that may arise.