Mortgage Complaints Skyrocket in 2013


WASHINGTON, D.C. – April 10, 2014 – (RealEstateRama) — The Consumer Financial Protection Bureau received 163,700 consumer complaints in 2013, almost double the amount it received in 2012, and mortgages were the most groused about item, accounting for 37 percent of all complaints, according to the 2013 Consumer Response Annual Report released March 31.

Most of the 60,000 mortgage complaints concern loan modifications, collections and foreclosures.

The CFPB, which was established as part of the Dodd-Frank Act, also is responsible for fielding complaints related to credit cards, bank accounts, student loans, auto and consumer loans, payday loans, credit reporting and debt collection.

“The most common type of mortgage complaint involves problems consumers face when they are unable to make payments, such as issues relating to loan modifications, collections, or foreclosures,” the reported stated.

Nearly 36,000 of the mortgage complaints related to inability to pay.

Other complaints focused on consumers who completed short sales but had their accounts incorrectly coded as foreclosures and consumers who experienced foreclosures and then had fees assessed against them. Loan servicing, payments and escrow issues also were common complaints.

When a consumer files a complaint, the CFPB tries to assist by helping borrowers through various avenues, including foreclosure alternatives, credit report corrections and debt collection protection.

The bureau’s report said that 77 percent of cases are closed through simple clarifications or explanations to consumers without any necessity for relief. Two percent receive monetary relief while 7 percent receive some other type of relief.

The CFPB report covers complaints received from Jan. 1, 2013 through Dec. 31, 2013. Since its inception, the CFPB has received more than 310,000 complaints.

Read the CFPB report.

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