Bank of America No. 1 in Mortgage-Related Complaints: Report

Bank of America No. 1 in Mortgage-Related Complaints: ReportU.S. consumers filed 36,403 complaints between July 21, 2011 and September 30, 2012, against lenders, servicers and other companies for mortgage loan-related issues, with Bank of America recording the most complaints by a sizable margin.
Bank of America took 27 percent of the complaints, followed by Wells Fargo (14 percent); JPMorgan Chase (10 percent); Citibank (5 percent); and Ocwen (4 percent), according to data collected by the U.S. Consumer Financial Protection Bureau.
The data was compiled and released by Business Insider today in a posting by Christian Hudspeth, of InvestingAnswers.com.
According to the CFPB, these five institutions received 60 percent of all mortgage-related complaints:
5. Ocwen
Mortgage Complaints Filed: 1,417 (4% of all complaints)
Most Common Complaints:
Loan modifications, collections, foreclosures (739 complaints)
Loan servicing, payments, escrow accounts (493)
Qualified Written Requests (95)
4. Citibank
Mortgage Complaints Filed: 1,703 (5% of all complaints)
Most Common Complaints:
Loan modifications, collections, foreclosures (894 complaints)
Loan servicing, payments, escrow accounts (490)
Application, originator or mortgage broker issues (140)
3. J.P. Morgan Chase
Mortgage Complaints Filed: 3,714 (10% of all complaints)
Most Common Complaints:
Loan modifications, collections, foreclosures (2,131 complaints)
Loan servicing, payments, escrow accounts (926)
Application, originator or mortgage broker issues (264)
2. Wells Fargo
Mortgage Complaints Filed: 5,051 (14% of all complaints)
Most Common Complaints:
Loan modifications, collections, foreclosures (3,009 complaints)
Loan servicing, payments, escrow accounts (1,123)
Application, originator or mortgage broker issues (427)
1. Bank of America
Mortgage Complaints Filed: 9,930 (27% of all complaints)
Most Common Complaints:
Loan modifications, collections, foreclosures (6,430 complaints)
Loan servicing, payments, escrow accounts (2,044)
Application, originator or mortgage broker issues (542)
Of those mortgage-related complaints:

  • About 20,000 complaints were filed against lenders and servicers for issues relating to loan modifications, collections and foreclosures.
  • Nearly 9,000 complaints were filed for issues relating to loan servicing, payments and escrow accounts.
  • Slightly more than 7,000 complaints were filed for other mortgage-related issues, including loan applicationprocessing, settlement signing processing and problems with underwriting and credit offers.

Bank of America and Wells Fargo did not reply to requests for comment on the Business Insider report.
JP Morgan Chase, Citibank and mortgage servicer Ocwen — which does not originate loans — each received more than 1,000 complaints, but that’s not an unreasonable number considering the total number of mortgage loans they oversaw over the period. Reuters reported that JP Morgan Chase originated 10.6 percent of all new mortgage loans in the second quarter of 2012 and acquired 10.2 percent of all mortgage-related complaints on the CFPB’s bank list.
In response to these findings, JP Morgan Chase spokeswoman Amy Bonitatibus told Business Insider: “Our customers are our top priority. When a customer raises an issue, we work to resolve it as quickly as possible. Over the last year, the number of complaints we received has decreased by roughly 40 percent. We continue to look for ways to improve the customer experience.”

Leave a Reply

Your email address will not be published. Required fields are marked *