Across the industry, borrowers are asking the same questions: Why did my payment change? Why wasn’t I told sooner? What happens next? And whether your organization contributed to the national research or is focused on improving the day-to-day homeowner experience in your own portfolio, these concerns are relevant to every servicer.
New research from J.D. Power’s 2025 U.S. Mortgage Servicer Satisfaction Study and LERETA’s Escrow Awareness Survey helps explain why these concerns are growing. The findings show that many homeowners lack clarity around how their mortgage is managed and become increasingly dissatisfied when changes aren’t communicated in a way that prepares them. In many cases, as escrow costs rise and borrowers struggle with both limited transparency and a lack of clear education, friction is growing at a time when clarity matters most.
Both studies point to the same pattern: when borrowers are given clear context about changes and have time to anticipate them, satisfaction rises. When details appear suddenly or without sufficient guidance, confidence drops quickly, regardless of the size of the adjustment.
The insights that follow matter to any institution responsible for guiding homeowners through their mortgage, from those overseeing complex, high-volume portfolios to the teams supporting borrowers at the regional or community level.
Below, we break down the key findings from both studies and what they signal for servicing leaders in 2025.
J.D. Power’s Findings: Satisfaction Hits New Lows
J.D. Power’s latest look at the servicing landscape shows a noticeable decline in how borrowers view their servicing experience. Overall satisfaction fell to 596 out of 1,000, which is ten points lower than last year and 131 points below mortgage originators. According to the study, the primary driver of this gap is communication and responsiveness, not interest rates or economic conditions.
Only 31% of customers rated their servicer’s messaging as attention-grabbing, and overall communication scores fell five points since 2022. Personalized alerts stood out as the most effective touchpoint, yet the study indicates that most borrowers still do not feel adequately informed about changes to their account.
Escrow activity intensified these concerns. 57% of customers experienced an escrow increase, and satisfaction among that group was 67 points lower than among borrowers who did not see a change. These findings reinforce a clear pattern: when escrow adjustments occur without clear explanation or preparation, borrowers feel blindsided, which deepens overall dissatisfaction with servicing.
LERETA’s Borrower Survey: Escrow Confusion Adds to Stress
LERETA’s Escrow Awareness Survey shows that many homeowners are still struggling to understand how escrow works and how it affects their monthly mortgage payment. The picture becomes clearer when compared with LERETA’s second annual Escrow Awareness Survey, which shows borrowers struggling to understand how their payments are calculated and why they change.
Only 60% of homeowners said they fully understand their escrow accounts, a sharp decline from 80% the year before. This steep drop reflects a growing knowledge gap that directly affects how prepared borrowers feel when their payments change.
LERETA also reports that 68% of homeowners experienced a mortgage payment increase due to rising property taxes and insurance. Of those borrowers, 55% were surprised by the change, which shows that many did not receive enough information to anticipate the adjustment. The survey further found that nearly 45% mistakenly believe a fixed-rate mortgage guarantees an unchanged monthly payment, reinforcing how easily misconceptions can shape borrower expectations.
These results make it clear that rising costs are only part of the problem. When homeowners are not given clear, accessible information about how escrow works, they struggle to understand routine adjustments or any activity on their loan that is reflected in their payment. That lack of clarity creates stress and erodes confidence in the process, adding pressure to an already challenging servicing environment. The survey highlights not just a shortfall in borrower education, but a real emotional impact: confusion, frustration, and anxiety about unexpected financial strain.
The Common Thread
Both studies point to the same conclusion. Borrowers are encountering changes to their mortgage that they do not fully understand, and the communication surrounding those changes is not giving them the clarity they need. They question the numbers, the process, and sometimes even the reliability of their servicer. That uncertainty quickly turns into frustration and erodes their confidence in the support they receive.
This breakdown in communication does more than create momentary confusion. It shapes how borrowers view their entire servicing experience, and it fuels a series of challenges that can impact both customer satisfaction and operational efficiency:
- Lower satisfaction
- Higher call volume
- Confusion and mistrust
- Increased servicing workload
- Declining recapture potential
In a business where trust drives long-term relationships, unclear communication becomes a real risk. Servicers who provide clear, timely explanations give borrowers the confidence they need to navigate changes without feeling blindsided.
What Servicers Can Do Right Now
1. Educate proactively
Explain escrow adjustments, tax impacts, and insurance changes in simple, borrower-friendly language. Clear explanation reduces surprise and helps borrowers anticipate normal fluctuations.
2. Personalize communication
Send targeted alerts when something changes, especially escrow-related. Personalized notifications were the most effective communication tool in the J.D. Power study, yet most servicers are still under-utilizing them.
3. Leverage technology for transparency
Use digital tools and self-service portals to surface account activity, tax amounts, and estimated changes before they hit the monthly payment. A transparent borrower is a confident borrower.
In a high-rate environment where costs continue to climb, communication is not a courtesy; it is a loyalty driver.
The Bottom Line
Whether you look at national consumer data or LERETA’s own borrower research, the conclusion is the same:
Homeowners want clarity. They want transparency. And they want communication that prepares them for what’s coming, not communication that explains what already happened.
Servicers who embrace proactive education and personalized communication can reverse declining satisfaction trends. And with the right technology partners, they do not have to take on that work alone.
If your organization is ready to improve the borrower experience and bring more clarity to your escrow process, LERETA can help you get there.
Contact us to learn more about how LERETA supports servicers and their borrowers.
