Mortgage servicing and misapplied funds are major sources of consumer complaint, according to the latest monthly complaint snapshot from the Consumer Financial Protection Bureau.
The bureau also profiled complaints from consumers in Tennessee, where debt collection topped the list of customer pain points.
As of Jan. 1, the bureau handled approximately 1,080,700 consumer complaints across all products nationwide. Approximately 260,500 of those concerned mortgages, with most of the mortgage-related complaints – 80 percent – concerned mortgage servicing. Additional complaints concerned misapplied funds and difficulties resolving issues with servicers.
Montana, Iowa and North Dakota saw the largest increase in mortgage-related complaints from third quarter 2015 to third quarter 2016 while Hawaii, South Carolina and Kentucky saw the biggest decrease in that time.
About 17,800 of the total complaints came from consumers in Tennessee. Most of Tennessee’s complaints came from the Memphis and Nashville metro areas, accounting for 4,700 and 5,800 complaints, respectively.
Debt collection caused the most complaints, accounting for 34 percent, compared to 27 percent nationally. Mortgage-related complaints clocked in at only 19 percent, compared to 24 percent national.
In December, debt collection also topped the list of most-complained-about products, accounting for 7,196 out of 23,000 complaints received. Credit reporting came in second at 3,837, and mortgages placed third at 3,762. Alaska, Georgia, and Louisiana experienced the greatest year-to-year complaint volume increases from third quarter 2015 to third quarter 2016. Wyoming, Vermont and Delaware saw the greatest decreases in that time.
“Today’s snapshot shows that consumers continue to report running into issues when making payments on their mortgages or when trying to overcome obstacles to keep themselves in their homes,” said CFPB Director Richard Cordray. “The bureau will continue to work to ensure that mortgage servicers give consumers the timely and effective assistance they deserve.”