The Consumer Financial Protection Bureau has released a monthly complaint snapshot highlighting common consumer complaints about mortgages. The report shows problems consumers continue to experience with mortgage servicers, and it also highlights consumer complaint trends from Tennessee.
“Consumers continue to report running into issues when making payments on their mortgages or when trying to overcome obstacles to keep themselves in their homes,” CFPB Director Richard Cordray said in a Feb. 8 news release about the report. “The bureau will continue to work to ensure that mortgage servicers give consumers the timely and effective assistance they deserve.”
Some of the reports findings include:
• Problems with mortgage servicing: More than 80% of mortgage-related complaints submitted to the bureau had to do with issues consumers report running into when making payments, or when they were unable to pay their mortgages, according to the release.
• Funds being misapplied: Consumers complained that money they paid to cover shortages in their escrow accounts was not accurately applied, the release stated. They also complained that electronic monthly mortgage payments made via bill pay services through their financial institutions were not properly credited to their loan accounts.
• Issues resolving loan problems: Consumers reported they had problems in dealing with servicers when trying to negotiate foreclosure-relief assistance on their loans, the release stated.
Meanwhile, the report also highlighted common complaints from Tennessee. As of Jan. 1, consumers in Tennessee had submitted 17,800 of the more than 1 million complaints handled by the CFPB since its inception, with most of those complaints coming from the Memphis and Nashville metro areas, according to the release.
Debt collection complaints accounted for the largest number of complaints submitted by Tennessee consumers (34%), which is above the national average for debt collection complaints of 27%, according to the release. Mortgage-related complaints accounted for 19% of complaints submitted by Tennessee consumers, which is below the national average of 24%, the release stated.
The Monthly Complaint Report uses a three-month rolling average of complaint data.
The full report can be read by clicking here.
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