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Frustrated borrowers speak up

By Polyana da Costa · Bankrate.com
Tuesday, September 11, 2012
Posted: 8 am ET

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?

Follow me on Twitter @Polyanad.

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5 Comments
Elizabeth N
September 25, 2012 at 11:44 am

Our home loan was an ARM that originated with Wells Fargo in 2006. Shortly afterward it was sold to US Bank. We were able to refinance in 2008. We didn't take any extra money or equity. Our payment increased over $300.
Fast forward to today: I lost my job and we started struggling. Contacted the bank trying for solutions, spoke with numerous US Bank employees, sent and re-sent our information 8 times. Yes, eight different times to multiple fax numbers and people. Never got to speak with the same person there is NO single point of contact so that's a big fat lie. Anyway no one had any copies or recollections of ever seeing ANY of the paperwork I sent (faxed multiple pages at a time) and one person actually told me that their faxes were often "lost" due to mis-filing.
Yesterday I found out from a local attorney (on US Bank's payroll) that they sold our home in a foreclosure auction BACK TO THEMSELVES and we now have ten days to get out.
US BANK lies and does NOT work with homeowners at all.

Chincia Kenner
September 21, 2012 at 3:34 pm

I have a fixed rate 203b FHA loan 30 year loan which I closed on in 2010. I am currently upside down in the loan with a mortgage payment of 1,118.24. The original lender was Wells Fargo and the sold the loan to US Bank home Mortgage. There is no modification program for loans which originated as FHA which are upside down that originated in 2010. My mortgage has all the red flags of mortgage fraud committed by the lender. The mortgage payment has changed 5x over a period of 2 years. There were seller and sales concessions which exceeded 6%, which were not adjusted out of the appraisal report, and they were not disclosed on the HUD settlement and GFE. Seller concessions were not adjusted out of the comparables in my neighborhood built by the same builder. My sales price was inflated to exceed the list price. The truth in lending agreement says 6% as the interest rate and the statements say 5.75%. The monthly statements for December reflect the total interest paid equivalent to the true amount of time of homeownership. While the the 1098 for 2010 reflected the amount of interest paid equivalent to 13 yers, and the 1098 for 2011 was equivalent to 6 years when I only have owned the home for years. The escrow disclosure statement for 2011 reflected the true amounts paid for escrow items. While the 1098 for 2011 reflected the lender had inflated the items paid for escrow for hazard insurance and mortgage insurance. I was never late in 2010 or 2011, but the escrow hx statment for 2011 reflected that i had two missing payments in January and February. There were too many errors. Wells Fargo changed the loan terms on the day of closing, did not following Respa guidelines to disclosure the mortgage terms properly. The lender Wells Fargo stated this left too much money on the table. The lender issued a kickback at closing, and told me because there was too much money left on the table, the rest would be applied to escrow reserves. The amounts which Well Fargo applied exceed the FHA limitations of 2 months to be financed into the loan for seller concessions. Wells Fargo sold the loan to US Bank Home Mortgage, and when they conducted their escrow analysis they based it in 2010 for 2011 they based there analysis as there being no change in the escrow payment. The Financing reflected the lender Wells Fargo had inflated the escrow reserve for property taxes and home owners insurance and mortgage insurance. FHA 's guidelines didn't permit them to have more than the 2 months. When property taxes and home owner's insurance increased. US Bank Home Mortgage indicated I had an escrow shortage because they did not collect enough from me monthly. However, I contested that because the amount of escrow reserves financed into my closing cost were overcharged. These overcharges were enough on the books to cover the escrow shortage. However, the lender inflated my mortgage payment from 880.37 to 1,118.24. I used their mortgage calculator tool to input the information from mortgage application into Wells Fargo's account, and it turns out the mortgage loan was not written for a conservative amount with 3.5%, it was written for an aggressive amount. Then when new credit was obtained and the loan was sold to US Bank Home mortgage using their tools. It even shows the mortgage which I am under now is aggressive and unaffordable. When you apply the necessary adjustments to the final contracted amount per the FHA guidelines, it makes the loan compliant and affordable. I submitted this information to the HUD OIG,consumer financial protection bureau,and to counselors with all of the supporting documentation. I received acknowledgement letters and case numbers from the agencies. But, no resolution performed by the lenders.

Dawn Scott
September 11, 2012 at 2:59 pm

We are in the trail period of our loan modification, but we hired a mortgage law group to help us through the confusion.
We submitted our paperwork, then received a letter it was refused because items where missing. Then they sent someone to our house to go over what we would need, however, my mom passed away and they would not let me reschedule the appointment.
We then decided to try and just pay it up, I would send money and they would send it back because it was not a full payment, they would not apply the extra to the escrow account, principal anything.
So as a last resort we hired a law firm and things seem to be going more smoothly. Keeping our fingers crossed.