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December 20, 2006
In Mortgage Lending, Big Is Better
J.D. Power and Associates, a sister unit of BusinessWeek in The McGraw-Hill Companies, came out last week with a report on overall customer satisfaction with primary mortgage lenders.
Here are the top five:
Bank of America
Notice that they're all big. No friendly local bankers among them. That's no coincidence, according to Rocky Clancy, executive director of the banking and mortgage practice at J.D. Power. Here's what he says in the press release:
“Contrary to other financial services sectors where smaller firms tend to perform better and relationships are key drivers of satisfaction, the highest-ranking mortgage lenders are large-scale players. Accordingly, process carries greater weight in determining overall satisfaction.”
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The companies may not be local by definition, but their representatives are - and that makes all the difference in the world. Those with local reputations and business tend to be far more accountable to their customers/clients.
Posted by: Jim Duncan at December 20, 2006 11:08 AM
That is interesting to learn, but if you think about it most of the horrors stories that you hear anecdotally are typically small mortgage lenders.
Posted by: Nagel at December 20, 2006 07:39 PM
Thanks for writing this post. I too am not too suprised by the study. Sometimes going with a larger firm does have its advantages since there are more stability and people trust the brand that if something goes terribly wrong, the firm will be hold accountable (then again, there are all these major corporations that bankrupted our confidence). Before I became a full time staging professional, I was working as a Realtor. I did find that smaller firms do more creative financing and tend to be more flexible than banks. However, I was surprised by what Bank of America offered when my cousin-in-law told me about what they offered. I think the main key point is what Jim had referred to, is that to just find a loan person you feel that you can trust and a brand that is reputable whether it's a giant or mom & pop.
I Stage to Sell, Live & Work in San Francisco Bay Area!
Posted by: cindy at December 25, 2006 01:12 AM
At the end it all depend on the best rates and service you get
Real Estate Buyers Agents in South Africa
Posted by: Charl at December 28, 2006 05:29 AM
I have been doing steady business with WAMU since 1990 and know them better than they know themselves.
I have had to walk them through much of the process and they act like I am a stanger every time out. They usually make a couple of dumb mistakes that require extra time to fix (with my help). Underwriters ask stupid questions and requirements met on previous transactions can be rerequested on new ones even though they have already been cleared.
But, they still have the cheapest money around. And, that's all I need to know.
Posted by: Larry Nusbaum at December 28, 2006 09:12 AM
SunTrust Mortgage should NOT be included anywhere on this list. I can speak from up close and personal experience. I was involved in many of the loan closings and they were nightmarish at best! Consumers BEWARE!!!
Posted by: Gayle Daniels at December 29, 2006 12:03 AM