The mortgage market is quickly drying up and lender competition is heightening in order attract the remaining drops of business thus making lender relationships more important than ever.
According to a recent report from PwC, “Attractive fees and terms and a clear-cut process might initially draw in customers, but it’s the loan officer that actually sticks in their minds. Fees and terms only drive 10% of positive memorable experiences, while almost half are driven by the loan officer.”
Loan officers drive 42% of negative memorable experiences, compared to 49% of positive of memorable experiences.
Borrowers want personalization in the mortgage product, service and relationship since they want a sense of security from knowing that their loan officer is molding the process to their needs, PwC explained.
And to top it off, recall of bad experiences is higher with mortgage lenders than any other industry.
The Consumer Financial Protection Bureau started its Consumer Complaint Database in July 2011, giving consumers a vehicle for lodging complaints.
Since its start, consumers have filed more than 176,000 consumer complaints between July 2011 and June 2013, and guess which industry left the most damage? Housing.
More than two-thirds of the complaints received centered on mortgages lending (48%) and credit reporting (21%).
In a speech to the National Association of Attorneys General, CFPB Director Richard Cordray noted, “Under our statute, the Consumer Bureau is required to develop and operate a process for receiving and handling consumer complaints in all the markets that we regulate.”
Cordray added that in just last month alone the CFPB received more than 30,000 calls and handled more than 20,000 complaints from consumers.
“Customization is key. By building your business around distinct customer segments, the borrower-and-lender relationship can become that personalized experience that customers crave,” PwC said.