The


Consumer
Financial
Protection
Bureau
(CFPB)
this
week
released
its

2023
Consumer
Response
Annual
Report,
offering
an
overview
of
consumer
complaints
in
a
variety
of
industries
overseen
by
the
bureau.

While
much
of
the
report
suggests
“a
continued
increase
in
credit
or
consumer
reporting
complaints,
with
more
than
one
million
of
these
complaints
being
sent
to
the
three
nationwide
consumer
reporting
companies,”
the
mortgage
industry
demonstrates
general
reactivity
to
the
feedback,
according
to
the
report.

The
CFPB
received
about
27,900
mortgage-related
complaints
in
2023
and
sent
23,300
(84%)
of
them
to
companies
for
review
and
response.
It
referred
another
10%
to
other
regulatory
agencies
and
found
6%
to
not
require
action.
As
of
March
1,
2024,
less
than
0.1%
of
these
complaints
were
pending
with
the
consumer
and
less
than
0.1%
were
pending
with
the
bureau.

The
response
rate
by
mortgage
companies
to
consumer
complaints
stands
at
99%,
according
to
the
bureau,
and
relevant
companies
“closed
92%
of
complaints
with
an
explanation,
2%
with
monetary
relief,
and
3%
with
non-monetary
relief,”
the
report
stated.
Mortgage
companies
provided
an
administrative
response
for
2%
of
complaints.

The
majority
of
consumer
complaints
in
the
mortgage
arena
(13,100,
or
58%)
were
focused
on
conventional
home
loans,
followed
by


Federal
Housing
Administration
(FHA)
loans
(19%),


U.S.
Department
of
Veterans
Affairs
(VA)
loans
(9%)
and
home
equity
lines
of
credit,
or
HELOCs
(6%).

Further
down
on
the
list
were
“other
types
of
mortgages”
(5%),

reverse
mortgages
(2%),
and
negligible
numbers
of


U.S.
Department
of
Agriculture
(USDA)
loans
and
manufactured
home
loans
(less
than
1%).

More
than
11,400
complaints
dealt
with
“trouble
during
the
payment
process,”
while
more
than
6,000
had
to
with
consumers
struggling
to
make
mortgage
payments.

Other
common
complaints
included
applying
for
a
new
mortgage
or
refinancing
an
existing
one,
closing
on
a
mortgage,
or
a
problem
with
a
credit
report
or
credit
score.
The
company
response
rates
in
these
instances
was
at
or
above
90%.

Mortgage
complaints
that
were
resolved
with
an
explanation,
however,
decreased
from
the
level
observed
in
last
year’s
report,
the
bureau
reported.
HELOC-related
complaints
also
increased
by
21%
compared
to
the
monthly
average
observed
over
the
prior
two
years.

Other
product
types
also
recorded
increases
in
consumer
complaints.

“The
monthly
average
for
[VA]
mortgage
complaints
increased
11%
compared
to
the
monthly
average
for
the
prior
two
years,”
the
report
explained.
“The
visible
spikes
in
complaint
volume
in
early
2023
appear
to
be
related
to
an
enforcement
action
announced
by
the
CFPB
against


Wells
Fargo.”

That
enforcement
action
was
announced
in
December
2022,
compelling
Wells
Fargo

to
pay
$3.7
billion
in
total
to
settle
multiple
consent
orders
related
to
auto
lending,
consumer
deposit
accounts
and
mortgage
lending.
The
penalties
totaled
$1.7
billion
and
an
additional
$2
billion
was
ordered
for
redress
to
consumers.

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