WHY AREN'T THERE MORE MORTGAGE RELATED COMPLAINTS?

By
Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

Why aren’t there More Mortgage Related Complaints?

 

I am by no means in favor of the CFPB, which is truly an unnecessary, bureaucratic agency. So what happens with all of these complaints that they are talking about?

 

I did a little homework on these complaints. The majority of them were filed against the four largest banks in this country, that apparently could care less about servicing their customers correctly.

 I got this note from a builder this morning and wanted to share what great customer service sounds like, but I know you already know. 

Joe, every time I called you for advice, you somehow kept that same cool.  I thought to myself, what he’s really thinking to himself is, if Lavitt brings me a buyer with an 800 or better credit score, maybe I can find the right lender?  But the next hurdle will then be the appraiser.  I’m not quite sure we did without a little divine intervention.  But, the three of us kept our heads screwed on right and the Lodges are all moved into their new home.  

 

 CFPB Received Some 55K Complaints About Mortgages

By: Krista Franks Brock

http://www.themreport.com/articles/cfpb-collects-more-than-55k-consumer-complaints-2012-07-31

The Consumer Financial Protection Bureau recently passed its one-year anniversary, and on Monday, the agency released its semi-annual report for 2012 highlighting its achievements in the first half of this year.

 

What do the numbers say? For starters, the consumer bureau has received more than 55,300 complaints between July 2011 and June 2012, according to the report.

The CFPB, which now consists of 889 staff members, has spent the past six months conducting research on various consumer financial products, building and initiating platforms for consumer complaints, supervising and regulating financial entities, and preparing and enacting enforcement actions when businesses do not comply.

The bureau accepts consumer complaints through its website, and by phone, mail, and fax.

Some of the top consumer complaints include, inability to modify or refinance mortgage loans, inability to refinance or consolidate student loans, confusion regarding credit scores, and confusion regarding various terms of credit.

The greatest single source of complaints, making up 43 percent of all complaints made to the CFPB, fell on mortgages.

A little more than half of the mortgage-related complaints had to do with problems consumers encountered when they were unable to make monthly payments.

When the CFPB receives a complaint, it informs the company involved. The company has the opportunity to respond to the complaint, and the consumer may then either accept or dispute the company’s response.

As of the date of the report, 44 percent of company responses were accepted by consumers.

Seventeen percent were disputed, and the remaining 40 percent of complaints were awaiting consumer reaction.

In addition to accepting and monitoring consumer complaints, the CFPB is reaching out to consumers through its Know Before You Owe campaign, which aims to make consumer finance products easier for consumers to understand.

The CFPB has also spent much of the past six months drafting rules to reform the mortgage finance system and “bring greater transparency and accountability to mortgage servicing,” according to the agency.

The CFPB is the first government agency established to protect consumers in the financial marketplace.

“Consumers deserve to be treated fairly, and to have someone stand on their side when they are not,” CFPB Director Richard Cordray said in a statement.

As for the agency’s progress so far, Cordray said, “The CFPB has used the tools at our disposal for the benefit of consumers in the past year, and we pledge to continue to do so as we work to promote a transparent, fair, and competitive consumer financial marketplace.”

However, the agency, which was established by the highly contentious Dodd-Frank Act, has met with considerable opposition as it works toward its intended goal.

The CFPB currently faces a lawsuit challenging its constitutionality. The lawsuit has been headlined by two conservative groups and a lone community banker from Texas, who suggests the CFPB holds too much power over who qualifies for home loans.

In June, public interest group Judicial Watch filed a Freedom of Information Act lawsuit against the CFPB to gather more information on Cordray’s appointment to his post, which was performed by the president without Senate approval.

Industry experts have also warned of the CFPB’s potential harm to the nation’s economy.

Mark Calabria, director of financial regulation studies at the Cato Institute, estimates the agency has already cost the economy 150,000 jobs because of its impact on the cost of consumer credit.

In a recent congressional testimony Calabria expressed his concern that the CFPB’s structure “reduces transparency and accountability.” He urged that “diligent and constant Congressional oversight is badly needed.”

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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  1. Lenn Harley 08/03/2012 05:59 AM
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Topic:
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Location:
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Groups:
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Tags:
loan modification
home purchase
refinance
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mortgage complaints

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Rainer
143,679
Andrew Capelli
Fidelity National Title

Joe: First, congratulations on the nice acknowledgment of your great customer service.  Second, the lack of transparency of the CFPB is troubling.  I also wonder how effective it truly is at protecting consumers.  Time will tell, I suppose- Thanks for sharing!

August 03, 2012 11:34 AM
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George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

Joe, good question what are they doing with the complaints?  The answer is very likely nothing since they seem to spend most of their time trying to justify their existence.

August 03, 2012 12:05 PM
Rainmaker
839,534
Joshua Zargari
MJ Decorators Workshop
MJ Decorators Workshop LI staging and home decorating

Happy Friday Joe.

This is another great and eye opening post.

Have a nice weekend.

August 03, 2012 02:26 PM
Rainmaker
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Lisa Von Domek
....Experience Isn't Expensive.... It's Priceless!
Lisa Von Domek & Associates LLC, Real Estate Broker/Associate with Real Living Real Estate Group www.LisaVon.com

Hello Joe,

Just another example of government created and controlled jobs that are, basically, worthless...

August 03, 2012 04:11 PM
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Debbie Reynolds
Your Dedicated Clarksville TN Real Estate Agent
Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730

Hi Joe, It is so refreshing to see a mortgage lender doing what's right and giving great service. Great job.

August 03, 2012 07:43 PM
Rainmaker
973,701
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty

Joe, why am I not surprised??? And I wonder how many of those calls were from disgruntled real estate agents on the other end of a short sale? Not surprised to read the comments by the builder about your service. Congrats!

Sharon

August 03, 2012 09:51 PM
Rainer
277,079
Steven Cook
- Pierce, King, Kitsap, Thurston, Mason Counties
No Longer Processing Mortgages.

Joe -- if they were really giving the consumers a big help - they would be naming who the problem companies were, so if there were more people having problems with that company - they would know more about how to complain effectively.  Keep up your great work!

August 07, 2012 02:37 PM
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Joe Petrowsky

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