September 17, 2021

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Mortgage News

Complaints hit record levels – CFPB

Mortgage customers are not happy – the last time they were this unhappy was April 2018 – and they let the Bureau of Consumer Financial Protection know how they are feeling and flooded the agency with complaints.

The problem that becomes the most unfortunate is forbearance, followed closely by the mortgage loan modification.

When the CARES Act introduced mortgage forbearance, it took twelve months. In February, President Biden ordered state housing regulators to extend the program for an additional six months and to extend the foreclosure assistance programs.

Borrowers who entered at the beginning of the program get nervous about what will happen after that period. .

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Although lenders are trying to help, the volume of inquiries seems to be causing problems – borrowers complain that their mortgage servants are difficult to contact and they find it difficult to find information about the forbearance programs.

Concern is that the CFPB may see a need to crack down on mortgage loan service providers if borrowers cannot get the information they want in a timely manner – and if service providers fail now, the chances are things will get a lot worse – soon.

“Homeowners’ emergency protection will expire later this year and by the fall a flood of borrowers will require assistance from their servicers,” said Dave Uejio, deputy director of the CFPB, last week. “The CFPB is proposing changes to the mortgage servicing regime to ensure that service providers and borrowers have the tools and time to prevent avoidable foreclosures that upset lives, uproot children and those least able to support them to incur additional costs. “

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According to MBA numbers, as of late March, around 2.5 million homeowners are in some kind of forbearance program, and despite those numbers, around 5% of Americans are criminals regarding their crimes Home loan at the moment.

Which states have the worst crime rates?

Louisiana 9.2%

Mississippi 8.4%

New York 8.0%

New Jersey 7.6%

Maryland 7.5%

National 5.6%

(Corelogic figures are approximate for January 2021)