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U.S. consumer bureau lists mortgage complaints

WASHINGTON – Sept. 22, 2015 – The U.S. Consumer Financial Protection Bureau (CFPB) released its latest monthly consumer complaints snapshot today, highlighting mortgage complaints. According to the report, consumers continue to face problems with mortgage servicing –particularly when they apply for a loan modification to avoid foreclosure.
“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,” says CFPB Director Richard Cordray. “The Bureau will continue to work to make sure that consumers are being treated fairly on their mortgage issues.”
With a total value topping $10 trillion, the mortgage market is the largest consumer financial marketplace in the country. In 2014, the CFPB put in place strong rules to protect consumers during the mortgage process – from taking out the loan to paying it back.
Since the CFPB began accepting consumer complaints in 2011, the Bureau says it has received more mortgage-related complaints than any other type of financial product. As of Sept. 1, 2015 the Bureau had handled approximately 192,500 mortgage-related complaints.
Snapshot findings
Continued problems preventing foreclosure: Over 50 percent of CFPB’s mortgage complaints are from consumers who can’t make their mortgage payments. They also complain about delays and a lack of information when applying for a loan modification. Additionally, consumers complain that servicers often move forward with foreclosure proceedings while the consumer’s modification application is still under review.  
Lack of information when loans are transferred: Consumers report experiencing confusion about where to make payments when loans are transferred. When the loan transfers occur, consumers complain that payments often increase unexpectedly. Consumers also say that they do not feel properly informed about their loans being transferred in the first place.
Trouble making payments: Nearly a third of mortgage complaints came from consumers who said 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.
Most-complained-about companies: Wells Fargo, Bank of America and Ocwen topped CFPB’s list of mortgage-related complaints. Between April and June 2015, the three companies averaged around 430 complaints per month.
Company-level complaint data uses a three-month rolling average and lags other complaint data by two months. The companies are expected to close all but the most complicated complaints within 60 days; after the CFPB forwards a company the complaint, the company has 15 days to respond.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, established consumer complaint handling as an integral part of the CFPB’s work. The CFPB began accepting complaints as soon as it opened its doors four years ago in July 2011.
Consumers can submit a complaint to CFPB online, by phone or through the mail.
© 2015 Florida Realtors®  
Source: Florida Realtors Feed

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