Surprise, Surprise! Most CFPB Complaints Relate to Mortgages, Modification and Foreclosure

David Dayen wrote about the Consumer Financial Protection Bureau’s (CFPB) release of information breaking down the complaints received so far:

So the majority of the issues covered foreclosures and loan modifications. Keep in mind that CFPB didn’t start taking complaints until July 2011. That’s AFTER the robo-signing scandal, after all the revelations of faulty servicing, in the midst of the five leading mortgage servicers negotiating with banks on settling over these issues of loan modifications and foreclosures. Indeed, a substantial chunk of this time comes AFTER the big five servicers signed the agreement, the foreclosure fraud settlement. And yet that remains the highest incidence of complaints. The next batch of 25% are problems with payments and servicing, which were also supposed to be covered by the settlement.

This is a pretty good barometer of whether or not the servicers have cleaned up their operations on foreclosures and loan modifications. And it’s pretty clear they haven’t. That’s because the servicing model itself is totally broken.

Housing Wire has a chart of the complaints received by the CFPB.

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