The most common mortgage complaints fielded by the Consumer Financial Protection Bureau come from troubled borrowers who are involved in loan modifications, collections and foreclosures, according to its semi-annual report.
The CFPB has received 61,500 mortgage complaints and 64% are associated with borrowers who are having problems making their mortgage payments.
The CFPB report to Congress points out that borrowers are “confused” about fees assessed by
“The fees often seem to represent a substantial barrier to a consumer’s ability to reinstate the loan and avoid foreclosure, as many servicers will not roll the fees into the loan balance,” the CFPB says.
In addition, the foreclosure fees are “sometimes listed as a one-line item on a restatement quote,” the report says.
Homeowners that successfully qualified for a loan modification also complain about their credit reports. “Some servicers do not amend derogatory credit reporting accrued during the trial period,” the report says.
This happens even when documents provided to the borrowers by the servicers indicate they will fix their credit reports.
The CFPB report released Tuesday simply highlights these complaints. It does not indicate whether the bureau is planning to take any corrective action.
