CFPB Spotlights Mortgages in Monthly Complaint Snapshot

Consumers continue to face problems with mortgage servicing, particularly when they apply for a loan modification to avoid foreclosure, according to the Consumer Financial Protection Bureau’s latest monthly complaint report.

Some of the findings in the snapshot include:

• Continued problems preventing foreclosure: Over 50 percent of mortgage complaints have to do with problems consumers face when they are unable to make payments. Consumers complain of delays and a lack of information when applying for a loan modification.
• Lack of information when loans are transferred: Consumers report experiencing confusion and frustration about where to make payments when loans are transferred. When the loan transfers occur, consumers complain that payments often increase unexpectedly.
• Trouble making payments: Nearly a third of mortgage complaints came from consumers saying that they have trouble making the proper payments on their mortgage loans. Consumers describe companies not accepting payments of anything less than the full balance owed, or finding that their payments were not properly applied despite instructions from the consumer.

“Despite strong protections that have been put in place to protect homeowners, this month’s complaint report shows consumers are still having problems when dealing with their mortgages,” said CFPB Director Richard Cordray. “The Bureau will continue to work to make sure that consumers are being treated fairly on their mortgage issues.”

As of Sept. 1, 2015 the Bureau has handled about 192,500 mortgage-related complaints. Overall, the bureau has received more than 702,900 complaints across all products.

The Bureau expects companies to respond to complaints and to describe the steps they have taken or plan to take to resolve the complaint within 15 days of receipt. The CFPB expects companies to close all but the most complicated complaints within 60 days.

Complaint Volume by Product

Monthly Product Trends

 

Complaint Volume by State