J.D. Power ranks USAA highest in mortgage servicing satisfaction.

USAA FSB, San Antonio, Texas, ranked highest in customer satisfaction in terms of servicing of mortgages, according to a study by J.D. Power and Associates, Westlake Village, California.

The J.D. Power and Associates 2006 Primary Mortgage Servicer [Study.sup.sm] measured customer

USAA received an overall customer satisfaction index score of 897 points based on a 1,000-point scale (see Figure 1), recording the highest ratings in each of the four factors by a wide margin. USAA was followed by BB & T Corporation, Winston Salem, North Carolina, at 861 points, and Citizens Bank, Providence, Rhode Island, at 844 points.

Rounding out the top five were GMAC Mortgage Group Inc., Horsham, Pennsylvania, with a score of 841 points, and Wells Fargo Home Mortgage, Des Moines, Iowa, with a score of 840 points.

USAA ranked the highest for both getting its customer service right and for getting it right the first time, explained Rocky Clancy, executive director of the banking and mortgage practice at J.D. Power and Associates.

"When USAA makes commitments to their customers, they meet those commitments," said Clancy. "Customers will often forgive mistakes, but they tend not to forgive broken promises. Problems are inevitable, but having a proper approach to those issues can speak volumes."

The study found that nearly one-half, or 45 percent, of mortgages do not remain with the originator for servicing at some point after the loan is closed. On average, customer satisfaction scores are 32 index points lower among customers whose mortgage is passed on to a different company for servicing.

"While this is common practice in the industry, removing the homeowner from the decision to sell the mortgage to a different company for servicing can create confusion and a sense of betrayal among customers," said Clancy.

"Removing the customer from the decision making in such a big part of the mortgage process takes away some of their sense of empowerment. Customers want stability and consistency with their home loans, and lenders who can deliver those are rewarded with customers who are not only more satisfied and loyal, but also have twice as many additional products with the lender."