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Mortgage complaints on the rise – CFPB

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Mortgage Professional America | 29 Apr 2016, 06:30 AM Agree 0
The CFPB received an average of about 4,600 mortgage complaints per month between January and March – up dramatically from the same period in 2015
  • Griff | | 29 Apr 2016, 11:58 AM Agree 0
    I wonder how many complaints there are from consumers regarding the ridiculous process for mortgage estimates, closing disclosures and 3 days waiting period to close. Or, better yet how many regarding the mortgage process in general. Sounds like the cfpb went about it a$$ backwards; should have gone after the servicing end first.
  • PissedOffAtLiberals | | 29 Apr 2016, 12:38 PM Agree 0
    I lost my job, I got divorced, I can't make my payments... So blame the lender?? Look, you signed a contract to pay on the 1st day of the month. No where in the mortgage contract does it say IF, or BUT. Make the payment. No pay, no stay! Stop complaining.
  • grmkrakr1961 | | 29 Apr 2016, 01:25 PM Agree 0
    You're Pissed Off at Liberals? Seems like the Conservatives are responsible for most of the things you complained about. They're the ones who continue to support banks, medical insurance companies, drug companies, and others who take advantage of everyone they can. I don't have a problem agreeing that when we make an agreement, we are responsible for our end of the agreement. But these big money making machines have responsibilities, too. That is to provide service and response to people who are doing their best to follow the rules. Problem is they have the money and power to get away with not living up to their part of a bargain. Same is true with many aspects of our conservative government when parts of it strive to empower the wealthy. The best part of our government is when it's branches work to meet in the middle and work together. It's greatest weakness is when it's branches detach themselves from the body and strive to stand alone.
  • mlo | | 29 Apr 2016, 01:40 PM Agree 0
    of course .. an article to present a case that the CFPB has merit and is an entity that adds substance to the lending industry .. what a waste of printed page. Also how interestingly the number one big bank that was very much a part of the whole TRID disaster is the the number one bank that has the most complaints . Now isn't that ironic.
  • Broker MLO in Denver | | 29 Apr 2016, 02:17 PM Agree 0
    While I agree the CFPB needs to either go, or at a minimum make significant changes; here is a story of something good.

    I helped a recent client submit a CFPB complaint against BofA (who was their lender at the time), after BofA needlessly declined them for a cash/out refinance. The complaint requested BofA return their appraisal fee. Within 5-days of the complaint, BofA agreed to the refund, after initially refusing to do so.

    They were in an FHA mortgage, with father as non-occupant co-signor, and asked to do a C/O for debt consolidation. BofA processed it as an FHA refinance even though there was clearly over 30% equity in the property, ordered appraisal, then subsequently declined them because now they realized that FHA doesn't allow non-occupant co-signor on a cash-out refi. They never offered to change the mortgage program to conventional (which is how I got them approved), and when borrower asked for their appraisal fee back were told "that's not going to happen," If FHA guidelines did allow the father to co-sign, they would be in an FHA mortgage today, paying over $4K in UFMIP, and over $150/mo MIP; at an LTV of 71% (including UFMIP); never suspecting that there was another option. Sure you could argue that they should have gotten another opinion or quote, but we all know that doesn't happen much.
  • | | 29 Apr 2016, 05:00 PM Agree 0
    Is there any reason why consumers should NOT be concerned? The CFPB is a disaster with its rule making as it pertains to TRID. Their lack of leadership and clarity around liability has stymied the different stages of the mortgage process almost in a perfect timeline "pattern" from its release date. Here's what I mean: TRID was effective on October 3rd, approximately 90 days later people would have had their mortgages closed and could complain about the new process- that is many things except for straightforward and simple. Consumers having to resubmit mortgages due to alphabetical order issues comes to mind and the time zone stamp on a rate lock being incorrect is another beauty. Then for the next 90 days we saw mortgage companies starting to have aged mortgages on their lines and some even went down due to unsaleable mortgages WJ Bradley amongst them. This is about the same time that most aging limits on their warehouse lines of credit would be ending and there would be requests for repurchases (from their warehouse lenders) for unsold mortgages (thanks Chase!). Then, about 30-60 days later (right now April/May 2016) we hear from the securities industry and the ratings agencies that they too are somewhat flummoxed by the lack of clarity around liability in regards to securitization of jumbo mortgages with TRID errors. No ratings = no capital markets take out = no one to buy jumbo mortgages except the big banks. As of this moment there is no more clarity around TRID liability as it pertains to the buyers of those securities that contain them, for seemingly ridiculous problems created by the CFPB rule making geniuses from Harvard (see above for the alphabetical and time zone stamps- two INCURABLE mistakes - don't worry there are more silly and stupid things that are within this rule as well) ugh!l So, yes, this industry vet is not at all surprised that consumers are angry. Just wait until they can't get a Jumbo mortgage anymore except from the very large institutions that caused the Government to create the CFPB in the first place. The irony is that the very large money center banks that have dolled out $Billions in fines for their bad behavior are the only institutions able to actually have the money and compliance teams to pay for the myriad stupid little laws the CFPB holds as sacred. Nice job. bravo. Did I mention that they always have to mention they went to Harvard? who cares? Make the playing ground fair not insanely complex unless you expect very bright young entrants into the work force to look elsewhere for risk taking opportunities... the mortgage industry is too hard to enter and the consumers will pay the ultimate price.
  • jer/oh | | 05 May 2016, 11:29 AM Agree 0
    As a signing agent completing over 2000 on-site document signings, the major complaints I hear from H.O.'s are that LO's and lenders are difficult to reach and do not respond in a timely manner and or they end up talking to a number of different lender reps and have to review their situations over and over to new people as well as send duplicates of documents required. H.O's generally like the new Closing Disclosers and when received on time, do indeed take time to review them. From a signing agent perspective, docs are arriving later and later sometimes only an hour or so prior to the scheduled signing with the H.O.'s; this sets up oversights and omissions by NSA's (Notary Signing Agents) for which our fees are docked. Seldom are borrowers told that doc packages are some 150-200 pp, and it takes a lot of time for borrowers to sign, date, add information to docs in the package. Even the best agencies and companies I have worked with are now forwarding docs in as little as an hour prior to signings, and most companies expect NSA's to complete signings in a very short period of time. Schedulers should all be required to serve as NSA's so they understand the difficulties NSA's and borrowers face at the scheduled signings, and work for the low fees paid for signing activity. To save money (and time) most companies are now using the "cattle call" process to get NSA's to agree to low fees and essentially, whoever responds first gets the job. Many problems with this approach. jer/oh
  • | | 05 May 2016, 11:58 AM Agree 0
    Griff nailed it!
  • | | 06 May 2016, 05:57 AM Agree 0
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