Consumer Mortgage Complaints Highlighted in Latest Report from CFPB
It looks like consumers are still having a lot of issues when it comes to the servicing of their mortgage loans. Additionally, lots of people have been complaining about it being difficult to make their loan payments to their lenders. All of this information comes via the most recent monthly complaint report from the folks over at the Consumer Financial Protection Bureau. As of the beginning of April, the CFPB has taken in almost 856,000 consumer complaints related to the various financial products/services that the bureau currently regulates.
In this report, there were listed 5,111 complaints related to mortgage issues filed in March of this year. That makes for a 13 percent increase from the previous month. There were also a little over 4,600 mortgage complaints that came in during the first quarter of 2016. That is an over 20 percent increase from the 3,800 complaints that came in during the first quarter of 2015. Going back to when the CFPB first started taking and keeping track of complaints from customers – back in 2011 – the average number of mortgage complaints per month is 4,217. As of right now, nearly a quarter of a million mortgage complaints have been filed altogether.
Nearly 51 percent of mortgage-related consumer complaints had to do with people having a difficult time paying their mortgage properly. Across the country, the CFPB reported that the monthly average number of complaints about debt collection complaints comes in at 6,818. Overall, the debt collection industry is responsible for nearly 26 percent of all complaints as of the beginning of the 2016 second quarter. Student loan debt complaints took their biggest leap so far, with an increase of 83 percent, due to 1,154 complaints logged in March.
Other Consumer Complaints in the CFPB Report
In the CFPB’s latest report, consumer complaints from the state of California were singled out. In this state, consumers logged 118,900 complaints to the CFPB as of the first of April. Mortgages appear to be the most complained about financial product in this state, which makes sense when the national trends are looked at. Debt collecting in California, however, seems to be less problematic than it is across the country. Debt collection complaints in California accounted for about 24 percent of all the complaints officially received. Of the five highest population states, California had the greatest overall leap in consumer complaint volume, with a growth of about 16 percent, when the stats from the first quarter of 2015 and 2016 were compared.
The Origins of the Consumer Complaint Database
The online source that consumers can use to log complaints about the financial industry is officially called the Consumer Complaint Database. It began in 2012 and was intended to be an online source for consumers to submit feedback and complaints about financial products/services directly to the CFPB. The CFPB is responsible for maintaining this data and following up on the complaints that are logged. Additionally, the CFPB makes regular reports that highlight the most troubling issues, as well as providing a general idea of consumer issues to the general public.
CFPB Needs to Make Better use of its own Consumer Data
With the CFPB making it a point to target industries, like the payday lending industry (which receives almost no complaints made to the CFPB database) it makes one wonder when the bureau will get its priorities together and begin to focus its resources on the sectors that are so far responsible for the lion’s share of consumer complaints.