Borrowers who call the Consumer Financial Protection Bureau with complaints about mortgages generally focus on their inability to pay or difficulties surrounding loan modifications, collections and foreclosure, the CFPB said in a new report.
The consumer agency is launching a database of public consumer complaints. The document outlines borrower problems with credit cards, mortgages, student loan debt and bank product complaints.
According to the CFPB report on mortgage complaints, requirements for obtaining loan mods and refinancing remain major issues for borrowers who report to the CFPB for assistance.
The CFPB says consumers are also dealing with confusion when it comes to refinancing, document submission, credit bureau reporting and the allocation of payments.
“The shelf life of documents provided as part of the loan modification process is of particular concern to consumers,” the CFPB wrote in its report. “Though consumers must provide documents within short-time periods and income documentation generally remains valid for up to 60 days, lengthy evaluation periods can result in consumers having to resubmit documentation – sometimes more than once. This seems to contribute to consumer fatigue and frustration with these processes.”
