IS EVERYBODY HAPPY?

Despite turmoil in the mortgage market in 2007, borrowers’ overall satisfaction with the mortgage lending industry has remained steady since 2006, says J.D. Power and Associates’ 2007 Primary Mortgage Origination Study. The study measures customer satisfaction with application approval, interaction with loan representatives, closing and problem resolution. “While it’s true that borrowers with weaker credit and those seeking larger ‘jumbo’ loans experience longer approval times and requests for more documentation, satisfaction has remained steady among the 75 percent of mainstream borrowers with good credit applying for moderately sized loans,” says Tim Ryan, senior director of the mortgage practice at J.D. Power. The study concluded that consumers were more satisfied when they worked directly with the lender rather than through a broker. It also found that customers who demand clear communication from their lender are more likely to get it. And customers who supply required documentation upon application have a smoother loan process. Overall mortgage lender satisfaction ranking based on a 1,000-point scale:

Wachovia, 827
SunTrust Mortgage, 818
Bank of America, 760
National City Mortgage, 759
CitiMortgage/Citibank, 753
Chase, 752
Industry Average, 750
Wells Fargo, 749
Countrywide Home Loans, 745
GMAC Mortgage, 744
ABN AMRO Mortgage, 740
American Home Mortgage Corp., 736
WaMu, 733
First Franklin, 595
Mortgage help for sub-prime borrowers!

In a recent decision from Washington there will be a 5 year interest rate freeze on subprime mortgage interest rates that are scheduled to rise over the coming months.  Approx 1.2 million people could be eligible for help but only a few will be subject to the rate freeze. Others would get assistance from their lenders and moving into loans secured by the Federal Housing Administration. There has been a new hotline assigned for borrowers who are falling behind on their payments and President Bush is urging people to call.  The Hotline is 1-888-995-HOPE.  This comes in a effort to wave off a surge of foreclosures in the coming years as 2 million subprime mortgages will experience a reset from their introductory low rates to higher levels of 11% or more.  The assistance will be for people living in their homes.  Investors, speculators and builders are not subject to receiving the assistance.