Changes to the Consumer Financial Protection Bureau's consumer complaint system could give lenders lots to gripe about if they don't prepare accordingly and be proactive, mortgage industry consulting firm STRATMOR Group said March 23.
The CFPB announced on March 19
To avoid the negative image that could come with these public complaint narratives, lenders should quickly reach out to upset consumers and whenever possible solve their problems, suggested Garth Graham, managing director of STRATMOR's MortgageSAT program, in a press release.
"We see that when lenders reach out directly to consumers right after closing to provide feedback, the consumers will provide it," Graham said. "We think it's better to have that approach than to wait until an unhappy consumer tells the story to CFPB."
While companies can respond to the complaints through the new policy, lenders still could face major headaches if they receive negative feedback via the CFPB, according to the STRATMOR Group's findings based on data from its MortgageSAT survey program.
"Our experience surveying tens of thousands of mortgage borrowers tells us that when consumers are not happy, they tell people about it," said Graham. "Lenders do not want these borrowers placing long, angry narratives into the public complaint database."
In 2014, STRATMOR surveyed more than 24,000 borrowers, 64% of whom left at least one comment on their experience. But those who had a negative experience were more likely to comment. Of the 8% minority of borrowers who rated their customer satisfaction at a 6 or below on a 10 point scale, 80% posted a negative comment.
