ABN AMRO Mortgage Ranks Highest Among Primary Mortgage Lenders

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Highly satisfied customers refer their loan originator to others more than twice as often
RISMEDIA, Dec. 23 ? ABN AMRO Mortgage ranks highest in overall customer satisfaction among 13 mortgage lenders, according to the J.D. Power and Associates 2005 Primary Mortgage Origination Study(SM) released.

The study measures customer satisfaction with the mortgage borrowing process among 4,498 consumers who originated a new mortgage in the past nine months. Three primary factors were identified that drive overall customer satisfaction: application/approval process, loan officer/representative or mortgage broker, and closing process.

With an overall index score of 756 (on a 1,000-point scale), ABN AMRO ranks highest in customer satisfaction with the sales experience. ABN AMRO Mortgage performs especially well within the closing process and receives scores well above the index average for the application/approval process and the quality of service offered by the loan officer/representative or mortgage brokers.

SunTrust Mortgage follows ABN AMRO Mortgage with an index score of 726 points and Wachovia ranks third with an overall score of 723 points.

?While ABN AMRO has only recently started to invest in its brand in the consumer space, it has long been known for its efficient, speedy processing of loan applications among brokers,? said Jeremy Bowler, senior director of the finance and insurance practice at J.D. Power and Associates. ?ABN was the first to introduce an Internet-based rate lock and application toolset in the wholesale marketplace, and is still viewed as an innovative lender today.?

While the application/approval process is a significant factor in achieving customer satisfaction, the closing process factor has the greatest impact on overall borrower satisfaction.

Customers place significant value in the convenience of closing and the accuracy of their monthly payment calculations. Satisfaction with the borrowing experience declines significantly when a customer?s quoted monthly payment increases.

Overall satisfaction among those borrowers whose monthly payment increased is more than 100 index points lower than customers whose monthly payment did not increase.

?Borrowers may feel somewhat deceived when their monthly payment does not match what was quoted in the Good Faith Estimate,? Bowler said. ?It is vital for lenders to be up-front and as accurate as possible with details at that time, especially if assumptions are being made regarding consumer credit scores.?

When shopping for a lender, 61 percent of recent borrowers asked their friends family members, their realtor or other personal acquaintances for recommendations on choosing a mortgage company. Additionally, more than 40 percent of borrowers indicate they utilize the Internet as a resource for gathering information during their lender shopping process.

The survey finds that recent ABN AMRO customers have recommend their lender to an average of 3.3 people, compared to other lenders? customers who indicate they have only offered an average of 1.6 recommendations since originating their loan.

?There is money to be made by really wowing a new customer,? Bowler said. ?During the post-sale halo period, delighted customers are out there making the most referrals. In a marketplace crowded with lender options, personal testimonial can be the most effective form of advertising for the lender.?

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