J.d. Power: Mortgage Servicers Lag In Digital Experience

While mobile apps have reshaped customer service across most industries, mortgage servicers are lagging, leading to uneven digital experiences for borrowers.

That’s according to the inaugural J.D. Power U.S. Mortgage Servicer Digital Experience Study, released on Thursday. The study is based on 5,223 evaluations from customers of the nation’s largest mortgage servicers.

Responses were collected in September and October from borrowers who used their servicer’s website or mobile app within the previous nine months.

The study found that the sector’s slow adoption of mobile technology has left many customers relying on outdated websites or offline communication. Even though some servicers have developed apps that meet industry standards, many still lag behind digital tools offered by other financial services firms.

“Mobile is the future of lending,” said Bruce Gehrke, senior director of wealth and lending intelligence at J.D. Power. “There is no more effective way of being present at the exact moment when customer decisions are being made, and mortgage servicers who are getting their app formulas right are starting to recognize that having a great app is core to driving customer engagement and brand loyalty.”

Gehrke said that today’s borrowers expect an easy digital experience.

“Mortgage servicers have invested heavily in modernizing tech stacks and improving operational efficiencies to deliver incremental value behind the scenes. However, that same level of investment has not been applied consistently to mobile apps across the industry,” he added.

Mortgage servicing apps receive an average satisfaction score of 704 on a 1,000-point scale, which is 22 points lower than mortgage servicer websites. Wealth apps scored 38 points higher on average while retirement provider apps scored 35 points higher.

The study found that just 44% of servicing apps deliver basic reliability and a clean, modern design. Far fewer offer features that borrowers say add real value. Only 12% allow users to easily set up alerts, make extra principal payments, or identify potential escrow shortages or overages.

As a result, disparities exist among servicers. Bank of America topped the rankings with a score of 784, which was 71 points above the industry average across apps and websites. Chase ranked second with a score of 762, followed by Wells Fargo Home Mortgage at 754.

“The overall framework of an app experience is built on the core pillars of intuitive navigation, fast performance, and visual appeal,” said Jon Sundberg, senior director of digital solutions at J.D. Power.

“Many mortgage servicer apps are lagging top performers in other industries when it comes to these essentials. With just 44% of apps delivering a foundational user experience, there is a lot of room for improvement in this space.”