30% of Homeowners Fear Foreclosure As Mortgage Stress Grows, J.D. Power Finds
By CU Today Staff —
TROY, Mich.— Customer satisfaction with mortgage servicers rose in 2026 despite continued affordability pressures and elevated mortgage rates, as lenders improved digital tools, communication and issue resolution in a housing market where most borrowers are staying put, according to J.D. Power's 2026 U.S. Mortgage Servicer Satisfaction Study.
Overall satisfaction increased 11 points year over year to 607 on a 1,000-point scale. The study found 86% of borrowers said they would probably or definitely use their current lender again, while the same percentage said they had not explored refinancing or other borrowing options in the previous 90 days.
"The servicing industry is entering a trust economy where the customer relationship after origination is more important than ever. In a locked-in housing market, mortgage servicers are increasingly succeeding at the moments that matter most by building trust through stronger communication, more transparency and improved digital experiences," said Bruce Gehrke, senior director of lending intelligence at J.D. Power.
The study also found borrowers remain under financial strain. Just 41% were classified as financially healthy, down from 52% in 2022. Sixteen percent said they had incurred a mortgage late fee during the past year, up from 14% four years ago, while 30% believe they are at risk of foreclosure, compared with 17% in 2022.
J.D. Power said rising escrow payments and servicing fees have become key factors influencing customer trust. Among borrowers with escrow accounts, 58% experienced an escrow payment increase this year, and those who received clear explanations of servicing fees were far more likely to express trust in their servicer and say they would use the lender again. The study also found strong self-service capabilities, quality customer service and easy payment options were the leading drivers of customer loyalty, while poor customer service was the top reason borrowers considered switching servicers.
Among the nation's largest mortgage servicers, Chase ranked highest in customer satisfaction with a score of 694, followed by Rocket Mortgage at 690 and Bank of America at 672. The study surveyed 14,118 customers who had been with their mortgage servicer for at least one year, with interviews conducted between May 2025 and May 2026.
Originally reported by CU Today.