The Consumer Financial Protection Bureau (CFPB) has released its report of consumer complaints received by the agency during 2021. During that time, the CFPB received approximately 994,000 complaints, of which nearly 32,000 complaints related to the mortgage industry. This was a nine percent increase from the number of mortgage-related complaints received in 2020.
Of the approximately 32,000 complaints the CFPB received relating to the mortgage industry, 84 percent were sent directly to the companies they involved, while 10 percent were forwarded to different federal regulators for potential action. The remaining complaints were deemed not actionable by the CFPB.
Of the complaints sent to companies, 98 percent of them received a response, and 88 percent were closed with an explanation from the company. Three percent of complaints were closed with non-monetary relief and four percent were closed with monetary relief.
In 2021, conventional home mortgages made up 65 percent of the total mortgage complaints while reverse mortgages made up less than one percent of total mortgage-related complaints. The primary issues with mortgage complaints were “trouble during payment process” (46 percent); “struggling to pay mortgage” (21 percent); and “applying for a mortgage or refinancing an existing mortgage” (19 percent). The number of complaints peaked early in 2021 when mortgage origination and refinance activities were abnormally high.
Forbearance was also a major topic in 2021 mortgage complaints. A significant portion of mortgage complaints relating to forbearance expressed confusion from servicer communications about relief options and delinquency notices. Consumers also reported delays with deferral or modification requests and denials due to previous modifications or insufficient income.