The Consumer Financial Protection Bureau (CFPB), established under the Frank-Dodd Act, has started taking mortgage complaints as of December 1st.
Borrowers with any type of mortgage, including an FHA mortgage, can contact the CFPB and register a complaint which the CFPB will forward to the mortgage company involved. The CFPB plans to interact with the mortgage company on the consumer’s behalf and update the consumer on the status of the complaint resolution.
A consumer may complain about any aspect of the process involving a mortgage, including the application process, the manner of mortgage solicitation, the settlement process and costs, making payments or problems involving payment difficulties related to collections, foreclosures or loan modifications. In addition, the CFPB solicits comments from consumers regarding whether or not they believe they have been discriminated against in any way during the mortgage process.
Many mortgage companies believe that the addition of the Consumer Financial Protection Bureau is unnecessary since a large number of agencies already exist at both the state and federal levels that consumers can contact for problem resolution with a mortgage.
The establishment of the CFPB has been contentiously debated by various members of Congress since it was first established. Many lawmakers have called for the agency to be terminated or subject to greater congressional oversight. Republican opposition to the agency has prevented the Obama administration from appointing someone to head the agency and this situation will probably continue until after the Presidential election.
In addition to taking complaints about mortgages, the CFPB also solicits complaints about the practices of the credit card industry and also offers options to consumers who are having difficulty making their mortgage payments.
Due to the current turmoil in the mortgage markets, it is expected that consumers will be breaking the doors down at the CFPB to file complaints against banks and mortgages companies.