Clear Customer Communications, Preferably Digital, Is Key to Increasing CX for Mortgage Servicers

Young Asian Couple reading Clear Customer Communications

Mortgages are a hot topic this summer. Not only are mortgage interest rates rising as the Federal Reserve tries to slow inflation, foreclosures are increasing since the end of pandemic forbearance.

To navigate these challenging times, mortgage servicers will need to step up their game when it comes to customer service. That’s especially true regarding digital communications and self-service options, which can reduce servicing costs while improving customer experience and satisfaction.

Clear communications are more important than ever

While automation and growing electronic use by mortgage holders has cut the number of calls per loan in the past two years by 23%, according to recent report from Standard & Poor’s, mortgage servicers are spending 22% more time on each call because borrowers have more complicated questions.

Poor communications also can drive customers away, which is not a sustainable model for any business. Mortgage transfers are a particular sore spot. Failing to effectively communicate during and about loan transfers hurts customer satisfaction and erodes trust for all parties, according to J.D. Power 2022 U.S. Mortgage Servicer Satisfaction Study, released in July. Only 15% of transferred customers say they are “very likely” to consider using the original lender in the future.

“The complexity of the mortgage industry creates challenges in customer understanding, particularly when it comes to mortgage transfers. We’re entering a market environment where customer satisfaction is going to play a critical role in the success of mortgage brands,” according to Tom Lawler, J.D. Power’s head of consumer lending intelligence, in the recent report.

Meeting consumer expectations for digital

It’s not enough to be technically proficient, J.D. Power found, and that’s backed up by the rise of longer customer-service calls despite electronic options. Customers respond favorably when brands communicate their intentions and provide clear guidance on what is happening and why, according to J.D. Power.

Mortgage lenders and servicers can drive those favorable responses using cloud-based customer communications management (CCM) software. Omnichannel CCM systems let mortgage servicers develop and distribute timely and customized print and digital financial communications.

They enable servicers to provide a better customer experience by promoting paperless choices, managing communication channel preferences, sending emails and texts and integrating with electronic bill presentment and payments (EBPP) solutions for easy self-service and timely payments.

Consolidating consumer communications on a single platform also:

  • Reduces the complexity of managing multiple vendors and significantly boosts privacy, security and compliance.
  • Mitigates rising mailing costs due to what seems to be never-ending paper goods and postal increases.
  • Provides call-center reps with real-time access to customer documents, facilitating quick handling of inquiries from borrowers facing loan term changes and regulatory disclosures with their adjustable-rate mortgages (ARM) as interest rates rise.

CCM technology gives mortgage servicers the control and flexibility to cater to customer preferences and agilely respond to changing business conditions with personalized content. It’s the cornerstone for  building effective and efficient customer relationships.

Connect with us to learn more about our Expresso CCM platform.