Mortgage Servicers Face Growing Customer Backlash in 2025

While mortgage originators continue to earn high marks for customer satisfaction, the companies that service those loans are finding themselves in hot water. According to the newly released 2025 J.D. Power U.S. Mortgage Servicer Satisfaction Study, borrower satisfaction with mortgage servicing has taken a serious hit, reflecting growing frustration with poor communication, rising escrow costs, and limited engagement.

As mortgage rates hold steady near 6.8%, homeowners are naturally watching their wallets closely. But it’s not just about high interest it’s the quality of the service borrowers receive after the loan closes that’s causing dissatisfaction.

“We’re seeing a widening divide between how customers feel about getting a mortgage versus managing one,” said Bruce Gehrke, senior director of lending intelligence at J.D. Power. “Origination experiences are at record highs, while servicing satisfaction has slipped to its lowest point. That kind of disconnect spells trouble for long-term customer loyalty.”

Satisfaction Scores Drop Again

• The average servicing satisfaction score for 2025 is 596 out of 1,000, a 10-point decline from last year.
• In contrast, mortgage originators scored a strong 727, highlighting a 131-point gap between the two sides of the borrower experience.

🔍 Why Are Borrowers So Frustrated?

• Escrow costs are rising: 57% of borrowers reported increases in escrow payments this year. Among those impacted, satisfaction scores dropped by an average of 67 points.
• Poor communication: Just 31% of customers gave top marks to their servicer’s communication efforts. Only 32% rated their servicer’s outreach as highly effective, down 5 points from 2022.
• Lack of personalization: While 46% recalled receiving personalized messages like account alerts, overall satisfaction with personalization is still underwhelming.
• Service matters more than ever: When switching providers, 51% of consumers cited customer service as a key factor ahead of interest rates and fees. Flexible payment options and access to loan info also ranked high.

🏆 Top-Performing Mortgage Servicers

Despite industrywide declines, a few servicers managed to rise above the rest:

1. Rocket Mortgage – 685
2. Guild Mortgage – 677
3. Regions Mortgage – 656

These leaders excelled in categories like trust, problem resolution, and ease of doing business.

📣 What the Industry Needs to Hear

This year’s report makes one thing clear: servicing isn’t keeping pace with borrower expectations. As origination slows and housing affordability remains strained, the pressure is on servicers to improve transparency, boost digital experiences, and build real relationships with homeowners.

Why it matters: When mortgage rates eventually fall and the market rebounds, servicers that invested in stronger communication and personalization will be the ones best positioned to retain and win customers. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.