April 20, 2018

CFPB Fielding More Mortgage Gripes

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CFPB Fielding More Mortgage Gripes

An increasing number of complaints filed with the Consumer Financial Protection Bureau are related to mortgages, the agency is finding. Thirty-seven percent of the 163,700 consumer complaints the CFPB received in 2013 were related to mortgages, with the bulk of those complaints regarding loan modifications, collections, or foreclosures, according to a new CFPB report.

“The most common type of mortgage complaint involves problems consumers face when they are unable to make payments, such as issues relating to loan modifications, collections, or foreclosures,” according to the report. “Consumers with successfully completed loan modifications have complained that some servicers do not amend derogatory credit reporting accrued by consumers during trial periods – even when documents provided to the consumers by servicers indicated that they would do so.”

Also, the report notes that consumers seeking short sales have submitted complaints to the CFPB that second-lien holders have refused to accept or subordinate in a short sale. Additionally, consumers who did obtain a short sale also submitted complaints to the agency that their loan accounts had been incorrectly reported as a foreclosure.

The report notes the following breakdown of the mortgage-related complaints the CFPB received in 2013:

  • Consumer problems when they’re unable to pay (loan modification, collection, foreclosure): 59%
  • Making payments (loan servicing, payments, escrow accounts): 26%
  • Applying for the loan (application, originator, mortgage broker): 8%
  • Signing the agreement (settlement process and costs): 4%
  • Receiving a credit offer (credit decision/underwriting): 2%
  • Other: 1%

Source: “CFPB Awash in Mortgage Complaints,” HousingWire (March 31, 2014)

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