Mortgage servicers claim they have improved their systems to work with borrowers who are struggling to pay their mortgages. But they still have a long way to go, according to a recently released report by the Consumer Financial Protection Bureau.
The CFPB received about 23,800 mortgage-related complaints from December of last year through June, according to a CFPB semiannual report. About 43 percent of complaints were from borrowers who had trouble keeping up with their mortgage payments. The issues mentioned in the complaints included loan modification, collection and foreclosure.
"Consumers who have filed these complaints generally appear to be driven by a desire to seek agreement with their companies on foreclosure alternatives," reads the report. "The complaints indicate that consumer confusion persists around the process and requirements for obtaining loan modifications and refinancing, especially regarding document submission time frames, payment trial periods, allocation of payments, treatment of income in eligibility calculations, and credit bureau reporting during the evaluation period."
One common complaint from borrowers is they often are asked to resubmit documents multiple times because servicers take a long time to process paperwork. The process leads to consumer "fatigue" and "frustration," the CFPB says.
Have you had any issues with your mortgage servicer?
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