A combination of historically low interest rates, record high unemployment and rising delinquencies have created a surge in customer inquiries to mortgage servicers during the COVID-19 pandemic, according to the J.D. Power 2020 U.S. Primary Mortgage Servicer Satisfaction Study.

The study showed that the surge has been met with more website use, long wait times at call centers and little proactive communication, dragging down overall customer satisfaction scores.

“The COVID-19 pandemic has really amplified the gaps in customer satisfaction, digital experience and call center experience that have been a challenge for mortgage servicers for some time,” Jim Houston, director of consumer lending intelligence at J.D. Power, said in a statement. “At a time when the need for streamlined, effective digital guidance and proactive outreach and counsel is more important than ever, mortgage customers aren’t finding the answers they need online, pushing them onto long customer service queues in call centers and leaving them to hunt for answers on how best to address their challenges.”

The 2020 U.S. Primary Mortgage Servicer Satisfaction Study measures five factors of customer satisfaction: communications, customer interaction, billing and payment process, escrow account administration, and new customer orientation. The study is based on responses from 7,275 customers who originated or refinanced more than 12 months ago and took place in March and April of 2020.

J.D. Power said the average industry satisfaction was up from 2019 and that many of this year’s findings were forward looking, providing lenders with information about what consumers want and expect.

Some key findings J.D. Power found in the 2020 study include:

• More than three-fifths (62 percent) of customers visit their lender’s website as a first line of information, but only 28 percent say online is the most effective channel for resolving an issue. Among those who could not resolve their issue on the lender’s website, 45 percent say the issue was resolved only after calling to speak with a representative. Given that websites are relied on for common customer activities, lenders need to make sure that their websites are more effective in helping customers resolve issues.
• Nearly one-fifth (19 percent) of customers say it is not easy to contact a live agent via the telephone. This negative experience causes a 261-point drop (on a 1,000-point scale) in satisfaction for those consumers looking to use this channel.
• Nearly half (44 percent) of at-risk customers called their servicer in the last 12 months compared to 25 percent of low-risk customers. At-risk customers also call an average of 3.15 times compared to 2.54 for low-risk customers. As the rate of at-risk customers grows, lenders should expect elevated call volumes that will challenge call centers already dealing with work-at-home limitations.
• Customers who receive three or four proactive communications per year from their mortgage lender have the highest levels of overall satisfaction, which is represented by an average score of 810. Yet, only 8 percent of customers said they received this level of communication. Far more – 40 percent – said they received no proactive communication from their lender, and 29 percent said they received 11 or more proactive communications. Too few or too many communications cause satisfaction scores to decline.
• When it comes to lender communication with customers, the factor with the single greatest effect on customer satisfaction is thanking customers for their business. Satisfaction scores increase by 86 points when lenders thank customers for their business, yet just 22 percent of lenders do this.

Quicken Loans was the highest-ranked mortgage servicer for the seventh consecutive year, with a score of 854. Regions Mortgage (846) ranked second and Huntington National Bank (827) ranked third.