CFPB Mortgage Complaint Snapshot - Opportunity for Provider Improvement
The Consumer Financial Protection Bureau (“CFPB”) recently released a snapshot of mortgage complaints summarizing what consumers reported as challenges in the mortgage marketplace over the last two years. The purpose of the snapshot is to allow consumers to directly engage with the CFPB, give guidance in response to consumer inquiries, and assist consumers in obtaining resolution from mortgage providers.
Payment process difficulties made up 42% of the complaints. More specifically, consumers noted concerns with application of extra payments, unaccounted for increased costs in escrow accounts, timeliness of periodic statements and fees, and payoff requests. The snapshot also compares mortgage complaint fluctuations with other financial products and services like student loans, debt collection, and credit cards. Mortgage complaints made up about 11% of the consumer responses. Maryland had one of the largest volumes of complaints.
The CFPB collects “unstructured data” with the complaints to assess how providers dealt with the consumers' concerns. The unstructured data includes documents from the consumer and the provider, the consumers' perspectives of the situation, and the providers' responses. Although the CFPB’s mortgage snapshot focuses on the consumer’s perspective, it is important for mortgage providers to review the report in order to proactively address future complaints. The CFPB often uses the report to help consumers resolve issues, which can ultimately bring a spotlight on specific providers and detect trends in their practices. Therefore, providers can use the reports to identify areas of opportunity for improvement and enhance how they document consumer interactions in the event the provider is subject to a regulatory action. Please contact Chastity Threadcraft to discuss this topic further.