Customer experience boosts mortgage servicers’ profits study says
Mortgage servicers who invest in the customer experience will reap rewards according to a new study by J.D. Power.
The study shows that even though 48 per cent of customers did not choose their mortgage servicer, there is still a benefit to investing in communication and the experience of customers. Those that do see an increase in profits and customer satisfaction.
“Servicers with a captive audience can often view taking measurable steps that improve the customer experience as an unnecessary investment,” said Craig Martin, senior director of the mortgage practice at J.D. Power. “They aren’t against improving satisfaction, but cost containment is their top priority. The study clearly shows, however, that interacting with customers more efficiently—and more effectively—can reduce costs and increase profit for servicers regardless of the business model, while having the added bonus of improving satisfaction.”
Improving the customer experience delivers a return on investment from lower rates of complaints, cost savings through better self-service channels, increased retention rates, and higher likelihood of cross-selling of products.
The lender with the highest satisfaction rating is Quicken Loans followed by Huntington National Bank and Regions Mortgage.
Chicago shakes off tight inventory as home sales rise 7 per cent
Chicago has seen a 7 per cent year-over-year rise in home sales despite inventory falling 10 per cent.
RE/MAX analysis shows that there were 55,996 home sales in the metro area during the first half of 2016, the highest level in ten years. Inventory was down to just 4 months’ supply at current sales levels.
“We are in an excellent environment for sellers, with prices trending upward and market times shortening,” said Jack Kreider, executive vice president and regional director of RE/MAX Northern Illinois. “We hope the second half of this year will see a noticeable growth in inventory, especially of moderately priced homes, which is the segment of the market in which the supply is the tightest right now.”
The median sales price also increased 7 per cent to $225,000, the highest first-half median sales price since 2008.
These cities are the best, worst for renters
Renters in Scottsdale, AZ are living in the best market for renters among the 150 largest cities in the US.
Their quality of life along with the affordability, availability of jobs, historical rental changes and vacancy rate are some of the key metrics used in analysis
by Wallethub to compile the rankings of best and worst rental markets.
Arizona renters dominate the top 5 with Chandler, Tempe and Gilbert also featuring along with Overland Park, KZ, the only city in another state.
San Francisco ranks in the bottom third at 104, Seattle is at 118 and LA is at 141. The bottom three markets for renters are New York (148), Hialeah, FL (149) and Oakland, CA (150).