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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.
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Photo of Christy W. Hancock Christy W. Hancock

Christy Hancock’s practice is dedicated to financial services regulatory compliance and litigation. Her work with mortgage servicing and financial institution clients has given her a broad base of knowledge regarding laws affecting the mortgage servicing business, including bankruptcy and foreclosure best practices, payment…

Christy Hancock’s practice is dedicated to financial services regulatory compliance and litigation. Her work with mortgage servicing and financial institution clients has given her a broad base of knowledge regarding laws affecting the mortgage servicing business, including bankruptcy and foreclosure best practices, payment application, correspondence requirements, allowable fees, loan modifications, escrow requirements, and property preservation. In recent years, the majority of her practice has focused on advising large financial institutions on bankruptcy-related regulatory matters and large-scale remediation projects.

Photo of John Thomas Mostellar III John Thomas Mostellar III

Tom Mostellar is an associate in the firm’s Banking and Financial Services Practice Group.

Tom received his J.D. (magna cum laude) from Tulane University School of Law, where he was an articles editor for the Tulane Law Review. He has…

Tom Mostellar is an associate in the firm’s Banking and Financial Services Practice Group.

Tom received his J.D. (magna cum laude) from Tulane University School of Law, where he was an articles editor for the Tulane Law Review. He has a B.S. in Business Administration from Washington & Lee University.

Photo of Megan McDowell Megan McDowell

Megan McDowell is an attorney in the firm’s Banking and Financial Services Practice Group.

Megan received her J.D. from the Cumberland School of Law at Samford University, where she was a member of the National Mediation Team. She has a B.A. (cum

Megan McDowell is an attorney in the firm’s Banking and Financial Services Practice Group.

Megan received her J.D. from the Cumberland School of Law at Samford University, where she was a member of the National Mediation Team. She has a B.A. (cum laude) in Economics from Sewanee: The University of the South.