On March 31, 2023, the CFPB released its annual consumer complaints report. Although there was a significant increase in non-mortgage related complaints, the volume of mortgage-related complaints decreased compared to previous years. The CFPB contacted companies for review and response for approximately 23,600 (or 81%) of the 29,100 mortgage complaints they received in 2022. Companies responded to 98% of mortgage complaints sent to them for review and response.

Here are some key takeaways from the 2022 report:

• The CFPB identified mortgage appraisals as an area of particular concern, especially with some consumers stating that they believed they had been discriminated against in the appraisal process. Although companies have consistently denied these claims, some companies did “revisit” the original appraisal and raise it after receiving the consumer’s complaint.

• Consumers continued to raise concerns about forbearance, as well as issues related to Homeowner Assistance Funds (HAF) plans. Many consumers reported delays in reviewing and implementing modifications and deferrals, as well as receiving confusing or conflicting communications about payment amounts and timing.

• The most common issue identified in mortgage complaints was “trouble during the payment process.” However, the monthly average for this issue decreased 5% compared to the monthly average for the prior two years.

• On average, companies responded to more than 1,900 mortgage complaints per month, compared to a monthly average of 2,100 complaints per month for the prior two years.

• Companies closed 89% of complaints with an explanation, 3% with monetary relief, and 4% with non-monetary relief.
  • Companies provided an administrative response for 1% of complaints, while 0.9% of complaints were still pending review as of February 1, 2023.
  • Companies did not provide a timely response to 2% of complaints.

*Megan McDowell is not a licensed attorney.