The J.D. Power and Associates 2006 Home Equity Line / Loan Origination StudySM declares Wachovia as having the highest customer satisfaction for a home equity loan or line of credit.
The study measured customer satisfaction with home equity line / loan lenders, and centered on the application and approval process, loan officer or banker, and the closing process.
Wachovia received an overall index score of 768 on a 1,000-point scale, with the highest customer satisfaction in the areas of loan officer or banker and closing process.
Washington Mutual came in second, with an index score of 758 and received customer satisfaction for the application approval process.
USAA ranked third, with an index score of 755.
According to the study, the relationship between the customer and the loan officer plays a key role in overall customer satisfaction. Customers who contacted their lender directly instead of via a broker or third party, have the highest satisfaction with their representative. Borrowers who contacted their lender directly are also significantly more likely to recommend their lender to friends and family.
The study also revealed customers who are more satisfied tend to use their lender for additional products and services, such as checking and savings accounts, additional financing, insurance and advice. Currently, 46% of home equity loan and credit line customers have savings and/or checking accounts with their lender and 44% of customers have primary mortgages.
Although there is a bounty of mortgage lenders, 42% of home equity loan, credit line, customers considered only one home equity lender when shopping for secondary financing, and an additional 34% considered just two lenders.
The primary reason customers obtained a home equity loan or credit line was to consolidate debt. The secondary reason was to repair or remodel a home, or to make a significant purchase, such as a car, vacation, wedding or college expenses. The typical home equity line of credit averages $45,000.
The 2006 Home Equity Line/Loan Origination Study is based on responses from 3,764 customers who originated a home equity line/loan within the past nine months.
