Loans

What mortgage debtors complained about most last year



Consumers filed nearly 28,000 complaints with mortgage companies Consumer Financial Protection Bureau Last year, it was mainly about the payment process.

More than half of the submissions, or 11,400 complaints, related to problems with the payment process.The report highlights concerns about reduce losses, in which borrowers reported servicer delays in reviewing and implementing loan modifications and extensions. According to the CFPB, many of the problems occurred after services were transferred.

“Consumers also reported receiving confusing or conflicting information about modification and extension options and payment amounts and timings,” the report said.

Common defendant complaints include rude service provider representatives, or being unable to reach someone at all. Service providers responded that they often require further documentation to review loss mitigation applications and apologized to customers for delays and inaccurate information.

Other customer complaints include late fees, negative credit reports and threats of foreclosure.Some of the grievances stem from foreclosures starting on loans that went into default in March 2020, right after Passage of federal pandemic aidBusinesses often respond that these customers are not paying on time or are unable to offer these tenants affordable payment plans, according to the CFPB.

Other problems also arise from this Homeowner Assistance FundConsumers told the CFPB that mortgage companies did not provide required information to the state HAF program on time and did not apply for HAF payments on time.

The regulator said in a statement that the vast majority of complaints ended with an explanation. 2023 Annual Consumer Response ReportOf the approximately 27,900 complaints it received, the CFPB sent 84% to the companies; referred 10% to other regulators; and found 6% unactionable.

Mortgage lenders resolved 92% of complaints with explanations and 2% with monetary relief. In comparison, 3% of complaints in 2022 were resolved with cash compensation, and 4% of issues in 2021 and 2020 were resolved the same way.

The CFPB’s new report found that by 2023, 3% of issues raised would be addressed through nonmonetary relief, which the CFPB defines as actions such as correcting inaccurate information and blocking harassing phone calls from debt collectors. The report did not specify how much of the mortgage loan the company paid consumers for on their claims.

Most questions involve conventional mortgages, followed by FHA loans and VA-backed mortgages. Complaints about home equity lines of credit and VA mortgages increased by an average of 21% and 11% monthly, respectively. the first two years.

Questions related to purchase and refinance applications and closings fell 1% compared to the previous two-year monthly average.

“This decline is likely due at least in part to inflation and Home ownership costs risewhich has had a significant impact on home sales,” the report said.

The number of complaints remained relatively unchanged compared to the same period last year. According to the CFPB 2022 reportAs of March 1, the regulator said less than 0.1% of complaints were unresolved.

The mortgage regulator recently reviewed fees Service relatedpart of its push Fight against “junk” fees in consumer loans.





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