About one in three complaints were about borrowers who were “struggling to make their mortgage payments,” and about half of this share had to do with facing foreclosure. Most of the portion stems from “trying to contact the company to resolve a problem related to a conversion, foreclosure, short sale, deed-in-leu, bankruptcy, or foreclosure,” according to the website.
About 13% of all complaints were related to applying for a loan or refinancing an existing one. Most of these problems arose from trying to contact the company to fix some kind of application problem. And about 10% of the total number of complaints were related to loan closing problems.
Of the 298 complaints, 217 were submitted to the office online and 56 were handled over the phone. Another 18 were sent and seven were handled by traditional mail.
Among the top 10 mortgage lenders in the world, Company Onity Group Inc. – parent company Company PHH Mortgage Corp. again Liberty Reverse Mortgage – there was a large number of complaints last year with 95. It was followed American Finance (27), Longbridge Financial share price (11) and Mutual of Omaha Mortgage (8). Eight complaints were disclosed American Advisors Group (AAG), a company acquired by FOA.
The vast majority of complaints (98%) were “responded to in a timely manner,” and the same proportion were closed with an “explanation.” Only 14 complaints filed last year were still ongoing as of Friday, Jan.
Peer Advisors LLC – parent reverse mortgage servicer Celink – received 51 complaints, second to Onity Group. In mid-2023, the CFPB released a report showing the highest average monthly complaints going back between 2020 and 2022, and the office suggested that this could be due to recent changes on the business side.
“In their complaints about reverse mortgages, consumers often express frustration in receiving statements or payments from their lenders, or they say they have difficulty making or paying the mortgage,” the bureau explained in the report.
“In their responses, sometimes companies will apologize for the delay and provide the requested information. In some responses, companies will request tracking information from consumers. “
Chargebacks also comprise only a small portion of all consumer complaints filed in the mortgage industry. The reverse share accounted for 1.4% of the 21,236 complaints received by the mortgage industry at large, with the largest number of complaints tied to the general mortgage sector (12,853).
Reverse mortgage applications have been on a downward trend since January 2016 (562) until January 2020 (247), before rising to 425 in January 2022. But they have returned to a downward trend.
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