Both of these complaint types put mortgage servicers in the crosshairs, but there are important takeaways mortgage brokers can use on the front end of the process. One executive said servicing switching hands, combined with increased delinquencies, has likely led to an increase in complaints.
Mirza Hodzic (pictured top), managing director and founder of BlackWolf, has worked with the CFPB and the Office of the Comptroller of the Currency (OCC) on compliance and audit issues over his more than 20 years in the industry. He said the number of actual complaints is likely much higher.
“These complaints that were sent to the CFPB don’t include your regular complaint that comes in,” Hodzic told Mortgage Professional America. “So I’ll tell you, as someone who’s managed the process on the compliance side, and as someone who does a lot of work with complaints right now, it was expected.”
Delinquencies and mergers causing issues
Affordability is one of the biggest issues in the mortgage industry right now. While that can refer to a potential homebuyer out shopping for a new home, it also applies to existing homebuyers trying to deal with inflated costs in their daily budget.
These challenges are leading to an increase in mortgage delinquencies. While they are still very low across the board, the surge in FHA loan delinquencies is concerning because these loans typically include very small down payments, meaning there might not be equity for these customers to refinance for savings.