twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.
CFPB Issues Mortgage Report Card

Complaints discussed in annual report

Sept. 20, 2012

By Mortgage Daily staff

A majority of complaints against financial services companies are related to real estate finance, according to a new government report. Many of the mortgage complaints were filed by distressed borrowers. The chief of the federal regulator that oversees financial services providers discussed the findings before Congress.

From July 21, 2011, through June 30, 2012, the Consumer Financial Protection Bureau fielded 55,300 complaints about consumer financial products.

Forty-three percent of all the regulator's complaints were about mortgage products -- a bigger share than any other product category.

The findings were included in the Semi-Annual Report of the Consumer Financial Protection Bureau. The report was discussed Wednesday by CFPB Director Richard Cordray before the House Committee on Financial Services.

A majority -- 54 percent -- of the 23,800 mortgage complaints filed were about problems that happened when the borrowers were unable to pay. These included issues related to the loan modification process -- which is particularly frustrating for consumers since the documents they submit often expire before a servicer responds to a modification application.

Foreclosures are also the subject of consumer filings.

"Consumers who have filed these complaints generally appear to be driven
by a desire to seek agreement with their companies on foreclosure alternatives," the report stated.

A quarter of the home-loan complaints were about making payments. Servicer administration issues related to escrow accounts and payment posting are among issues raised in complaints.

Eight percent of mortgage complaints were about applying for the loan, the CFPB reported.
Complaints were made about mortgage loan applications, loan originators and mortgage brokers.

sketch of Richard Cordray
sketch of Richard Cordray
by Stephen McConnell

The report indicated that 4 percent of mortgage category complaints related to signing an agreement, and 2 percent were about receiving a credit offer.

The remaining 7 percent were categorized as "other."

With the vast majority of complaints -- two-thirds -- lenders said that the consumer complaints were closed with an explanation.

Another 16 percent were still under review by the companies, 9 percent were closed with monetary relief and 5 percent were closed with non-monetary relief. In addition, companies provided an administrative response for 4 percent of the complaints, and just 1 percent were closed without any explanation from the lender.

In 42 percent of the cases, the consumer did not dispute the company's response, while the company's response was disputed 19 percent of the time. Consumers have yet to review 39 percent of the responses.

"Through our regulatory tools, we have proposed smarter rules that will help fix the broken mortgage market with common-sense solutions," Cordray said in prepared testimony. "We are writing rules that simplify mortgage disclosure forms and rules that make sure consumers do not receive mortgages that they do not understand or cannot afford. Our rules will also bring greater transparency and accountability to mortgage servicing.

"And our careful process is that before we propose a rule, a team of attorneys, economists and market experts evaluates its potential impacts, burdens and benefits for consumers, providers and the market."

The bureau, which had just 58 employees as of Dec. 31, 2010, has seen its staffing grow to 889 as of June 30, 2012. Women account for 49 percent of CFPB employees, and minorities make up a third of headcount.

next story

back to current headlines

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Loan Modification News
Loan modification activity, reports and legislation.

Mortgage Compliance News | Mortgage Compliance Newsletter | Mortgage Regulations
News about complying with mortgage laws, rules and regulations.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders