What Effect Does Requesting The Same Document Multiple Times Have On The Borrower Experience?

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According to research from MortgageSAT, the largest satisfaction benchmark in the mortgage industry with more than 120,000 survey responses annually, 28 percent of borrowers say they were asked multiple times for the same document, resulting in a drop in Satisfaction from 96 to 79. Net Promoter Score shows an even steeper fall, from 90 to 42.

Why is this important?

This problem is affecting nearly one in every three borrowers and deserves careful scrutiny. A 48-point drop in NPS means that not only are you losing out on possible referrals, but you are adding detractors, those who will badmouth you and turn away business. As the table below shows, while Promoters (those scoring “Likelihood to Recommend” as 9 or 10) drops 28 points, Detractors (those scoring “Likelihood to Recommend” as six or less) increased by 20. In other words, 28 less people out of every 100 will refer friends and family, and 20 more will badmouth you. The combined effect can be devastating to future sales.

The Diagnosis

Preparing the borrowers to provide needed documentation starts with the LOs knowledge of underwriting guidelines. The more familiar the borrower is with the lender’s parameters, the better.

This is especially true when dealing with higher credit and higher income borrowers.

As you can see below, borrowers with the highest credit scores (760+) have the lowest NPS score (29) when asked for the same document twice. Similarly, borrowers in the highest income range ($12,500+) are the least forgiving (NPS of 10-16) when asked for the same document twice. Perhaps these borrowers feel their elevated credit score and high income status entitles them to a smoother loan process.

Unsurprisingly, we see the same trend when it comes to higher loan amounts:

The Prescription

Some borrowers clearly come to the loan process with heightened expectations. As a lender, your goal is to give the same excellent service to all borrowers across the board.

There are three effective approaches to help curb the problem of asking for the same document multiple times:

  1. Prepare the Borrower. Certain documents, like pay stubs and bank statements, will often need to be re-requested as new ones come available. Encourage LOs and Processors to instruct the borrower upfront that they will need to send in each of these next statements they receive, as some may view requests for updated documents as a repeat request for the same document. If the borrower is prepared ahead of time for this, they are less likely to become annoyed by it.
  2. Have Borrower Submit All Docs Together. Let the borrower know early on that their loan package can only be submitted once all items on the checklist have been provided and are up to date. Instruct them not to send you anything until they have everything. Not only will this save LOs and Processors from losing documents along the way, but the docs will also be up to date when they submit to underwriting.
  3. Consider Digital Document Storage. Sometimes a document gets lost between the LO and the Processor. Sometimes the Underwriter misplaces a document. What processes do you have in place to make sure this never happens? If you don’t have it already, consider digital record keeping and digital uploads from customers, to help avoid misplaced documents.

Learn More about MortgageSAT and how it can impact you.

Ready to learn more about STRATMOR’s turnkey survey solution called MortgageSAT, and how rich, drill-down data can help your company? Contact MortgageSAT Director Mike Seminari at mike.seminari@stratmorgroup.com to learn more.