The Consumer Financial Protection Bureau released its second monthly complaint snapshot for credit reporting complaints from consumers, and mortgages continue to receive the highest number of grievances.
The latest CFPB report featured a geographic spotlight on Los Angeles, Calif. As of August 1 of this year 94,000 consumer complaints were filed to the CFPB, which accounts for 14% of the 677,200 complaints handled by the regulator.
And mortgages continue to make up the vast majority of those.
However, mortgage originators see it as an opportunity to extoll the benefits of working with smaller players.
“I think folks who have been in the business for a long time and don’t work for the larger institutions are able to take a lot of time on each deal and tailor the advice and products to each individual,” Harry Worthington of Alterra Home Loans told Mortgage Professional American Magazine. “Clients can definitely get a better experience with smaller institutions because they offer a more personal option.”
Borrowers aren’t happy with the status quo at bigger banks.
“Mortgage-related complaints have been the most-complained-about product in Los Angeles metro area since the CFPB started taking complaints in July 2011,” the CFPB said in its report. “While the Bureau has received more mortgage complaints nationally than any other financial product, consumers in Los Angeles have submitted mortgage complaints at a higher rate—35 percent of total complaints—than the national average, which is 28 percent of total complaints.”
This month’s report also focused on problems with incorrect credit report information – an issue that many originator clients may encounter, and one that can be just as frustrating for brokers as it is for home buyers.
“Whether a consumer is trying to get a mortgage, apply for a student loan, or buy a car, credit reports are fundamentally important in allowing people to access their financial goals,” CFPB Director Richard Cordray said in a release. “As we see a rise in the number of consumers complaining about this issue, the Bureau will continue to work to ensure that credit reports are fair, accurate, and readily available to all consumers.”
Originators – and clients – can access the database
and access all complaints made to the CFPB since it started collecting the data.
It’s an opportunity for originators to showcase their customer service, with new data pointing out just how unhappy Americans are with big bank mortgages, especially in one state