The National Association of Mortgage Brokers recently requested that the Consumer Financial Protection Bureau address immediate changes needed within the Consumer Complaint and Consumer Inquiry Handling Processes.
NAMB urges the bureau to re-examine its approach when filtering truthful complaints about those in the mortgage process and develop a process for companies to reclassify consumers’ submissions.
“A process of verification and correction is warranted. Consumers are at a disadvantage in knowing exactly what type of loan originator with which they are dealing,” NAMB President John Stevens said. “NAMB suggests the bureau request the National Multi-state Licensing System identification number that should be on documents or advertisements of the loan originator."
NAMB states that for many years, the bureau falsely reported that consumers were experiencing extensive issues with mortgage brokers. However, when examined, it was determined that 90% of complaints were registered against lender and bank LOs, not mortgage brokers.
NAMB said the CFPB should determine the specific individual and loan originator working with the consumer, therefore limiting consumer involvement, according to Stevens.
It also said the bureau should not release complaint data until the parties involved have been identified and their level of responsibility has been verified.
“Mortgages are extremely complex and involve various parties and outside vendors to verify consumer-provided data. The mortgage process can be slowed or halted for a variety of reasons,” Stevens said. “The LO should not be labeled for a complaint because issues out of their control stopped the mortgage process.”