Reverse loans accounted for 1% of all mortgage complaints reported by consumers to the Consumer Financial Protection Bureau in 2013, according to its annual report.
Last year, the CFPB received about 59,900 mortgage complaints, the bulk of which fell under an “other mortgage” (45%) category, followed by “conventional fixed mortgage” (29%) and “conventional adjustable mortgage” (10%).
The remainder of the complaints were from consumers submitting feedback about FHA mortgages (8% of complaints), Home equity loans or lines of credit (4%), VA mortgages (2%), second mortgages (1%) and reverse mortgages. Mortgage complaints accounted for nearly 37% of total complaints received by the CFPB in 2013.
The CFPB reported the complaint data in its March 2014 Consumer Response Annual Report, covering 2013.
“Every complaint the CFPB receives makes a difference,” said CFPB director Richard Cordray in the report’s introduction. “Through their complaints, consumers help us to make the marketplace a better and safer place, not only for them but for responsible businesses as well.”
From when the bureau began accepting complaints in July 2011 through the end of February 2014, the CFPB has handled about 309,700 consumer complaints. In 2013, total complaint volume rose 80% to 163,700 compared to 2012.
A majority of mortgage complaints were related to consumers who were unable to pay, including instances of loan modification, collection, or foreclosure, at 59%. Around a quarter (26%) were related to making payments, including loan servicing, payments, and escrow accounts.
Written by Alyssa Gerace