The CFPB's report, released Tuesday, found that consumers face servicing problems when they are not able to make their payments.
According to the data, as of April 1, 2016, the Bureau has handled approximately 859,900 complaints across all products, including approximately 26,500 complaints in March 2016.
The top three most complained about products in the report were debt collection, mortgage, and credit reporting, together they represent about 69 percent of complaints submitted in March 2016. Mortgage make up 223,126 of the total complaints, 5,111 of these occurred in March, and they are up 13 percent from last month.
The CFPB began accepting complaints from consumers about financial products shortly after opening its doors in July 2011. The mortgage market is the largest consumer financial marketplace in the country with more than $10 trillion in total value. The CFPB enacted new mortgage rules in 2014 to ensure strong consumer protections and also ensure that lenders offered affordable mortgages to consumers.
The CFPB found that consumers are experiencing the following problems with the servicing of their loan:
- Problems when consumers are unable to pay: Consumers complained of prolonged loss mitigation review processes in which the same documentation was repeatedly requested by their servicer. Consumers also complained that they received conflicting and confusing foreclosure notifications during the loss mitigation review process.
- Confusion over loan transfers: Consumers complained that they were often not properly informed that their loan had been transferred. As a result, payments made to either the prior or current servicer around the time of the transfer were not applied to their account.
- Communication issues with servicers: Consumers complained that when they were able to speak with their servicer, the information they received was often confusing and did not provide the clarifications they were hoping for.
According to the report, the most-complained-about mortgage companies between November 2015 to January 2016 were Wells Fargo, Bank of America, Ocwen, and Nationstar Mortgage.
“Today’s report shows that consumers are still running into too many dead ends and obstacles in resolving issues with their mortgage servicer,” said CFPB Director Richard Cordray. “The Bureau will continue to press to make sure that people can get the right information and the timely help they need.”