CFPB received less reverse mortgage complaints in 2024
About one in three complaints had to do with borrowers who “struggled to pay for their mortgage”, and almost half of this share were related to tackling preventments. The majority of the other half came from “trying to communicate with the company to solve a problem with regard to change, tolerance, short sale, deed-in-lieu, bankruptcy or shielding,” said the database.
About 13% of all complaints were related to requesting a loan or refinancing an existing one. Most of these issues stemmed from an attempt to communicate with the company to solve a kind of application problem. And about 10% of the total share of complaints was related to problems with taking out the loan.
Of the 298 complaints, 217 were registered in the Bureau Online and 56 were taken by telephone. Another 18 were referred and seven were handled through traditional post.
Under the top 10 reverse mortgage providers of the nation, Onity Group Inc. – The parent company of PHH MortGage Corp. And Liberty Reverse Mortgage – Last year had the largest number of complaints at 95. It was followed by Financing of America (27), Longbridge Financial (11) and Mutual or Omaha Mortgage (8). Eight complaints were attributed to American Advisors Group (AAG), a company absorbed by FOA.
The vast majority of complaints (98%) was ‘responded in a timely manner’ and a similar share was concluded ‘with explanation’. Only 14 complaints that were recorded last year continued from Friday 24 January. Only one complaint was concluded with monetary exemption for the complainant.
Peer Advisors LLC – The parent of Reverse Mortgage Manager Celink – Receive 51 complaints, second general at unity group. In mid -2023, the CFPB published a report that showed a higher average share of the monthly reverse mortgage complaints between 2020 and 2022, and the agency suggested that this could be attributed to recent changes to the company’s service side.
“In their complaints about reverse mortgages, consumers often express frustration to get statements or a payment amount from their lender, or state that they have difficulty making a payment or paying a mortgage,” the agency explained in the report.
“In their answers, companies will sometimes apologize for the delay and the requested information. In other answers, companies will ask for follow -up information from consumers. “
Reverse mortgages again only include a small part of all the complaints of the consumer who were levied in the wider mortgage industry. The reverse share accounts for 1.4% of the 21,236 complaints that the mortgage industry has received in general, with the largest number of complaints linked to the conventional mortgage space (12,853).
Reverse mortgage complaints were from January 2016 (562) to January 2020 (247), before in January 2022 to 425 in January 2022 they were posted. But they are back on a downward trend.
