Skip to main content

What Mortgage Complaints are Made Most Often? You Might be Surprised


     
What Mortgage Complaints are Made Most Often?
You Might be Surprised

     According to a recent report released regarding Mortgage Industry Consumer Complaints, what was the single complaint most often heard regarding the Mortgage Industry?

     A.  The Mortgage Application/Processing of a loan
     B.  Interest Rates and Fees charged on a loan
     C.  Underwriting requirements
     D.  Payment issues with their loan servicer
     E.  Loan Modifications

     I think you will be surprised by the answer ... it's D.  

     62% of the total complaints on file with the Consumer Protection Bureau (CFPB) regarding the Mortgage Industry stem from this one portion of loan service.  That means that the largest number of complaints came from Homeowners after they had already successfully closed on their Mortgage. 

    The remaining percentage of complaints typically surrounded:
  • Where to send Mortgage Payments 
  • Escrow shortages or overages
  • Loan Modification questions and requests
  • Late Payments
  • The difficulty of Mortgage Application
  • Signing the Agreement

     The perception of current Mortgage Industry problems is typically quite different though. The media ... and our politicians ... continue to portray the entire Industry as one mired in the same issues found prior to the housing crisis.  The reality is quite different. 

     That is not to say that the Origination side of the Mortgage business is perfect, or that Underwriting is seemless or without flaws.  Problems still exist in those areas and they provide fuel for many more posts and discussions.

    But great strides have already been made to address the ills that existed ... and changes/new rules and regulations have been put into place that will prevent them (and others) from occurring again.  Even more changes are slated for the upcoming new year. 

     Fact is though, Mortgage Originators have to a great extent successfully made the changes demanded of them.  The proof of that is reflected in the number and types of complaints currently received by the Consumer Protection Bureau regarding Mortgage services.

     But consider this:  Loan Servicing (the term used for handling of Mortgage payments, escrow accounts, modifications, etc.) ... and the #1 complaint heard from consumers ... is handled primarily by the largest Banks.  This most likely means that loan servicing is not likely to change anytime soon, especially if insuring loans becomes less GSE's like Fannie Mae/Freddie Mac ... and more private money (Banks, corporations, insurance companies).      

https://1609956119.secure-loancenter.com/FreeConsult.aspx
      Why?  These large Banks have far more lobbying power and can influence decision-makers much more effectively than the smaller Mortgage Bank or Mortgage Broker Associations can. 

     As a result, the need to "change" the industry to eliminate of what is considered the "problems of the past" is still being placed largely on the Mortgage Origination side of the Industry. But I ask ... 


     Is that really where the focus should be?  Does that truly serve the best interests of the Consumer or Home Buyer as they exist today? And does that really address the complaints and issues most Consumers currently have?
 

     As we near January 10th, 2014 and the implementation of the new QM Rules, only time will tell if any of the changes demanded make an impact or improve the actual Mortgage problems that surface most often today ... or if they just create another set of issues for Mortgage Originators and their clients to face ... 

   
http://www.genemundt.com/ContactUs.aspx

    
     *  Hoping to Buy or Refinance a home within a Lincoln-Way Community, Will County, or elsewhere in Chicagoland?  Contact me.  I'll put my 36 years of Mortgage experience and expertise hard to work on your behalf.
     I can be easily found at the following:
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax: 815.524.2281
Click HERE for a FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx


    

  

    

Comments

Popular posts from this blog

Property Addresses: Gettin' Down to the Nitty Gritty

Property Addresses:   Gettin' Down to the Nitty Gritty

Take just a second and read through the following statements ...


“The devil is in the details” 
... "in life, it is often the tiny details that end up 
being the most important"

"Get Down To The Nitty Gritty"

“Little details have special talents in 
creating big problems!” 

“Sweat the details”

"Success is the sum of details"

Details ...Details ... it's all about the details ...
     And I'll admit it, I'm a bit of a nerd about them.  My whole family is.  Details, the intricacies, the little things ... they matter to us.
When I was growing up, a typical conversation (and argument) between my brothers and myself at the dinner table or in the backyard centered around "details".  It didn't matter what the topic was, it was the minor differences ... the details about the topic ... that we argued about.  I'm sure we drove our parents crazy.  
Sports statistics and games ... minutiae rega…

Ready for Fall? It's Arriving Soon

Ready for Fall?  It's Arriving Soon

Friend ...

Maybe it's because football season has started. Maybe it's the kids being back in school. Or because the night air is cooler. But a sense of Fall has arrived here in Chicagoland ...

The Fall Season brings changes with it. Changes in temperatures. Changes to the clothing we wear. Our focus seems to shift with the coming of shorter days, falling leaves, and crisp air.

Fall can be the perfect time to do a multitude of things. You can prep your home for the upcoming winter weather ... or for Fall listing and sale. 

But whether you're moving on or staying put, Fall is a great time to declutter and organize your home inside and out ... and your finances too.

I've googled like crazy to find interesting articles filled with Fall info, ideas, tips, and photos. Articles that will help you usher the Fall Season in at your house. I hope you enjoy reading the articles offered below and that they inspire you to make any needed changes.

Rem…

Paper or Paperless billing? Which serves YOUR needs best?

Paper or Paperless billing?  Which serves YOUR needs best?


These days, companies are under pressure to go "green" and become more environmentally friendly.  As a result, an increasing number of businesses are offering their customers a paperless option with which to receive and pay their bills. 

There are obviously many positives to be found within these paperless services:


Trees are saved  Reduced postage costs  Less paper documentation to organize or save/storePossible rewards for switching to paperlessPayments can often be made/posted same-dayAutomated payments can be set-upMore
But I can tell you from my vantage point as a Chicagoland/IL/WI Mortgage Originator, there are also negatives to be found within paperless methods.  For some of my mortgage clients, the choice of going "paperless" just hasn't worked well.

 For some, an email or text reminder regarding payment of bills has not been enough. They NEED a paper billing to arrive in their mail. 

Their paper bil…