JD Power's Gehrke says the number isn't a crisis signal yet, but calls it a harbinger of what could be coming
The share of mortgage borrowers who believe they are at risk of foreclosure has nearly doubled in four years, according to new data from JD Power's 2026 U.S. Mortgage Servicer Satisfaction Study released Thursday. According to the survey, 30% of borrowers now say they fear losing their home, up from 17% in 2022.
The figure does not reflect actual foreclosure rates, which remain manageable, but it points to a meaningful shift in how borrowers are feeling about their financial position at a time when escrow payments are rising, late fees are increasing, and the broader financial health of the average homeowner is declining.
The study, based on responses from 14,118 customers fielded between May 2025 and May 2026, found that just 41% of borrowers are currently classified as financially healthy, down from 52% four years ago. The study found nearly 6 in 10 fall into categories JD Power defines as vulnerable, stressed, or overextended.
Bruce Gehrke (pictured top), senior director of wealth and lending intelligence at JD Power, said while he doesn’t see the 30% number as a crisis yet, it is worth keeping an eye on.
"When you ask that question in the realm of consumer research, you're getting an emotional response," Gehrke told Mortgage Professional America. "Is it actually 30% that are really at risk? I don't think so. I think we would see higher numbers in foreclosures and delinquencies now if it really was."
‘Harbinger for the future’
The distinction Gehrke draws is between sentiment and outcome, and he said that servicers and brokers should pay attention to both.
"I think this is more of a harbinger for the future, not so much as a current risk," he said. "But what I think it highlights for servicers from a risk management standpoint is to watch behavior, to try to open up — and it's a difficult thing in a low-touch environment like this — conversations around this."
The survey also found that 16% of borrowers incurred a mortgage late fee in the past 12 months, up from 14% four years ago. Also, 15% fell behind at some point, and 58% of borrowers with escrow accounts reported a payment increase in the past year driven primarily by rising homeowners insurance premiums and property taxes.
The financial health breakdown Gehrke cited uses a framework from the banking industry that classifies borrowers across nine questions into four categories, and Gehrke said the data shows a population under significant pressure even as servicer satisfaction scores are rising.
"In all, 59% of the borrowers responding to the study, almost 60%, are in what we call the unhealthy characteristics, which are vulnerable, stressed or overextended," he said. "So that's just showing you what they're up against, what they're thinking and what they're feeling."
Why early intervention is key
In the survey, Chase ranked first with an overall customer satisfaction index rating of 694. Rocket Mortgage was close behind in second at 690. Bank of America, Huntington National Bank, and Regions Mortgage rounded out the top five. Overall customer satisfaction increased 11 points on average this year.
Gehrke said the hardest part of acting on that data is the nature of the mortgage servicing relationship itself, a low-touch environment where the opportunity to have difficult conversations is limited.
"Most servicers will tell you early intervention with borrowers who are having trouble making payments tends to drive better outcomes for both the servicer and for the homeowner," he said.
The difficulty is that distressed borrowers are often least likely to initiate that conversation themselves, Gehrke said. A borrower who does not want to discuss financial difficulty with a person can still take action through digital channels, but the stigma around the conversation remains a real barrier.
"When people start to feel stressed or falling behind, the last thing they want to do is talk about it," he said. "And it's the best thing that they can do. But that's always been a problem."
This opens the door for the mortgage broker who is keeping up with their past clients to be able to make that early intervention and provide solutions.
Tom Davis, chief sales officer at Deephaven Mortgage, told Mortgage Professional America in April that brokers who aren’t reaching out are at risk of losing customers to these servicers who are providing early intervention instead.
“One of the larger servicers, their CEO stated that ‘retention is their religion,’ and so that tells me it's their religious belief to solicit the LO’s clients as soon as they buy that loan,” Davis said. “That's how strongly they believe in retention.”
Michael Brenning, chief operating officer of eLEND, was more direct on the issue when speaking to Mortgage Professional America at AIME Fuse 2025 last October.
“There are razor-sharp, cutthroat competitors doing the right thing for their own personal financials as a company, but not good for the broker community,” Brenning said. “So, brokers, be aware, the servicers are out there. They're hunting for your portfolio. They're hunting for your client. You've got to be ready for that.”
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