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From Banking and Finance Law Daily, September 22, 2015

Mortgage servicing is focus of CFPB monthly consumer complaint snapshot

By Richard A. Roth, J.D.

The Consumer Financial Protection Bureau has received more consumer complaints about mortgages than about any other financial product or service since the bureau began accepting complaints in 2011, according to the CFPB’s “Monthly Complaint Report.” The CFPB has received more than 192,000 mortgage-related complaints, out of a total of more than 700,000, the bureau says.

The monthly “snapshot” report says that more than half of consumers’ mortgage-related complaints deal with problems that arise when the consumers can’t make their payments. These include complaints about inadequate information, rejection of partial payments, and dual-tracking—a servicer practice of moving forward with a foreclosure while a consumer’s application for a loan modification is being considered. Servicing transfers also generate a significant number of complaints, with consumers being uncertain about where to make payments and not understanding payment increases.

Other complaints. The CFPB’s monthly report includes information on consumer complaints about other financial products and services. For example:

  • debt collections resulted in the most complaints in August 2015, with credit reporting second;

  • consumer loan complaints have nearly doubled since August 2014, with payday loans showing the largest increase;

  • credit reporting agencies Experian and Equifax, along with Bank of America, were the most complained-about companies in the U.S.

Geographic spotlight. The report’s “geographic spotlight” fell on the Denver metropolitan area. According to the CFPB, Denver’s experience has been consistent with that of the nation as a whole, with mortgage-related complaints being the most numerous since July 2011. Debt collection and credit reporting complains are second and third by number, as they are nationwide.

Also, Experian and Equifax are the two companies that generate the most consumer complaints from the Denver area.

MainStory: TopStory CFPB DebtCollection FairCreditReporting Mortgages

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