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Top 10 Servicer Settlement Complaints

It might not make the Late Show With David Letterman, but a list of the top 10 complaints for borrowers impacted by the national mortgage servicer settlement has been released. Problems with single points of contact topped the list.

The Office of Mortgage Settlement Oversight monitors the activity of mortgage servicers that participated in the massive settlement reached in February 2011.

On Thursday, a report from the office indicated that servicers failed eight of the 304 servicing standards established in the settlement.

The report also highlighted the 10 most frequent “executive office” complaints received by the servicers between Oct. 1, 2012, and March 31, 2013.

Such complaints are “filed with the servicers by the offices of elected officials on behalf of their constituents.”

At the top of the list was “Single point of contact was not provided, was difficult to deal with or was difficult to reach,” which garnered 12,340 “hits,” according to the report.

In all, 59,586 total executive office complaints were received for all banks.

Borrowers complained about a non-responsive single point of contact 7,620 times.

The third-worst category was servicers failing to update borrowers’ contact information or account balances. There were 6,127 complaints in this category.

Next was foreclosures initiated after an application had been submitted by the borrower for a loan modification or loss mitigation.

After that was “bank did not take appropriate action to remediate inaccuracies in borrower’s account,” followed by “bank requested financial statements that borrower already provided” and “bank did not accept payments or incorrectly applied them.”

Banks that were unresponsive during the short-sale process generated the eight-most complaints, followed by “bank failed to correct account information applied them” and “bank took too long to advise borrower of deficiencies in their submission.”

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