What to Watch Out for with Your Mortgage Servicing Company

"Problems with payments head the list of consumer complaints about the companies that service home mortgages."

 

Mark Henricks

 Follow

Sep 6, 2016 10:02 AM EDT

ARTICLE LINK (CLICK HERE)

A Virginia borrower complained that after making a monthly mortgage payment via credit union electronic transfer the bank servicing the mortgage denied receiving payment despite two confirmation faxes from the credit union. In Texas, a borrower said a new servicer took over a loan, never sent a bill or responded to attempts to set up an account and make payments and then posted the home for foreclosure. 

These are two of 3,910 complaints about mortgages sent to the Consumer Financial Protection Bureau in July 2016. Mortgages represent the third-biggest category of complaints to the CFPB, behind debt collection and credit reporting. As of April 1, 2016, CFPB's online complaint system had handled nearly 860,000 complaints since it opened 2011, of which mortgages accounted for more than 223,000.

Mortgage complaints spiked during the last recession and housing downturn before falling to about their current level. Now they may be heading up again. During the first quarter of 2016, average monthly mortgage complaints were up 21% from the same period a year earlier, according to the CFPB.

Rocke Andrews, president of the Plano, Texas-based National Association of Mortgage Brokers, says during the downturn complaints tended to be about brokers but more recently concern servicers. One reason is that pricing pressure is causing servicer consolidation and efforts to reduce costs, he says.

"What you see now is there are probably five servicers that handle 75% of all servicing," Andrews says. "To make it profitable, you have to scale it up and do as much as you can automated. As a result, as a consumer, more than likely you're going to wind up with one of those automated systems when you call in for information."

Andrews says consumers with a problem can increase chances of a successful resolution by bypassing the automated systems -- often by pressing the "0" key -- and asking the human rep to speak with a supervisor. If that doesn't work, try hanging up and calling back, he suggests.

Complaints come in many varieties, but since 2011, most (51%) are "problems when you are unable to pay," according to the CFPB. Next is "making payments," cited by 31%. Complaints about applying, signing the agreement and receiving a credit offer are all single digit percentages.

Some problems are caused by borrowers confusing the servicer, which collects payments and disburses taxes and insurance, and the holder of the mortgage note. Borrowers may be upset that a servicer won't approve skipping a payment, when the borrower has to approve that, Andrews says.

Another common problem regards partial payments. Sometimes, such as during foreclosure proceedings, the amount owed may change after a payment is mailed and before it is received. The borrower may think payment has been made, when in fact it's been disallowed as a partial payment. New rules require servicers to tell borrowers upfront whether they will accept partial payments may help this problem, Andrews says.

While nearly a quarter of a million complaints to regulators sounds like a lot, Marina Walsh, a vice president with the Washington, D.C.-based Mortgage Bankers Association, notes that problems are typically handled before reaching the CFPB, and the complaint count is modest compared to the number of borrowers. "There are approximately 50 million outstanding mortgages in the U.S. and many more customer escalations or complaints are tracked and logged, then resolved directly by the mortgage servicer," Walsh says.

Walsh said dedicated phone numbers, customer service-friendly websites and better call center monitoring is helping to improve borrowers' experiences with servicers. "On the technology side, servicers have woken up and realized that they need to go digital especially for millennial borrowers," Walsh says. "This means revamping websites to provide more capabilities, offering seamless mobile options and generally moving toward a self-service and self-monitoring model preferred by some many borrowers, particularly Millenials."

• . . . . . . . . . . . . . . . . .
• 
  
• Please contact us if you need help or resources as we are here and happy to help!
• 
  
• Respectfully,
• 
  
• Dana Shafman
• Managing Member
• END Consulting
• (888) 234-7006 Ext 101
• Dana@ConsultingEND.com
• 
  
• www.TheDailyComplaint.com

What to Watch Out for with Your Mortgage Servicing Company

"Problems with payments head the list of consumer complaints about the companies that service home mortgages."

 

Mark Henricks

 Follow

Sep 6, 2016 10:02 AM EDT

ARTICLE LINK (CLICK HERE)

A Virginia borrower complained that after making a monthly mortgage payment via credit union electronic transfer the bank servicing the mortgage denied receiving payment despite two confirmation faxes from the credit union. In Texas, a borrower said a new servicer took over a loan, never sent a bill or responded to attempts to set up an account and make payments and then posted the home for foreclosure. 

These are two of 3,910 complaints about mortgages sent to the Consumer Financial Protection Bureau in July 2016. Mortgages represent the third-biggest category of complaints to the CFPB, behind debt collection and credit reporting. As of April 1, 2016, CFPB's online complaint system had handled nearly 860,000 complaints since it opened 2011, of which mortgages accounted for more than 223,000.

Mortgage complaints spiked during the last recession and housing downturn before falling to about their current level. Now they may be heading up again. During the first quarter of 2016, average monthly mortgage complaints were up 21% from the same period a year earlier, according to the CFPB.

Rocke Andrews, president of the Plano, Texas-based National Association of Mortgage Brokers, says during the downturn complaints tended to be about brokers but more recently concern servicers. One reason is that pricing pressure is causing servicer consolidation and efforts to reduce costs, he says.

"What you see now is there are probably five servicers that handle 75% of all servicing," Andrews says. "To make it profitable, you have to scale it up and do as much as you can automated. As a result, as a consumer, more than likely you're going to wind up with one of those automated systems when you call in for information."

Andrews says consumers with a problem can increase chances of a successful resolution by bypassing the automated systems -- often by pressing the "0" key -- and asking the human rep to speak with a supervisor. If that doesn't work, try hanging up and calling back, he suggests.

Complaints come in many varieties, but since 2011, most (51%) are "problems when you are unable to pay," according to the CFPB. Next is "making payments," cited by 31%. Complaints about applying, signing the agreement and receiving a credit offer are all single digit percentages.

Some problems are caused by borrowers confusing the servicer, which collects payments and disburses taxes and insurance, and the holder of the mortgage note. Borrowers may be upset that a servicer won't approve skipping a payment, when the borrower has to approve that, Andrews says.

Another common problem regards partial payments. Sometimes, such as during foreclosure proceedings, the amount owed may change after a payment is mailed and before it is received. The borrower may think payment has been made, when in fact it's been disallowed as a partial payment. New rules require servicers to tell borrowers upfront whether they will accept partial payments may help this problem, Andrews says.

While nearly a quarter of a million complaints to regulators sounds like a lot, Marina Walsh, a vice president with the Washington, D.C.-based Mortgage Bankers Association, notes that problems are typically handled before reaching the CFPB, and the complaint count is modest compared to the number of borrowers. "There are approximately 50 million outstanding mortgages in the U.S. and many more customer escalations or complaints are tracked and logged, then resolved directly by the mortgage servicer," Walsh says.

Walsh said dedicated phone numbers, customer service-friendly websites and better call center monitoring is helping to improve borrowers' experiences with servicers. "On the technology side, servicers have woken up and realized that they need to go digital especially for millennial borrowers," Walsh says. "This means revamping websites to provide more capabilities, offering seamless mobile options and generally moving toward a self-service and self-monitoring model preferred by some many borrowers, particularly Millenials."

• . . . . . . . . . . . . . . . . .
• 
  
• Please contact us if you need help or resources as we are here and happy to help!
• 
  
• Respectfully,
• 
  
• Dana Shafman
• Managing Member
• END Consulting
• (888) 234-7006 Ext 101
• Dana@ConsultingEND.com
• 
  
• www.TheDailyComplaint.com

What to Watch Out for with Your Mortgage Servicing Company

"Problems with payments head the list of consumer complaints about the companies that service home mortgages."

 

Mark Henricks

 Follow

Sep 6, 2016 10:02 AM EDT

ARTICLE LINK (CLICK HERE)

A Virginia borrower complained that after making a monthly mortgage payment via credit union electronic transfer the bank servicing the mortgage denied receiving payment despite two confirmation faxes from the credit union. In Texas, a borrower said a new servicer took over a loan, never sent a bill or responded to attempts to set up an account and make payments and then posted the home for foreclosure. 

These are two of 3,910 complaints about mortgages sent to the Consumer Financial Protection Bureau in July 2016. Mortgages represent the third-biggest category of complaints to the CFPB, behind debt collection and credit reporting. As of April 1, 2016, CFPB's online complaint system had handled nearly 860,000 complaints since it opened 2011, of which mortgages accounted for more than 223,000.

Mortgage complaints spiked during the last recession and housing downturn before falling to about their current level. Now they may be heading up again. During the first quarter of 2016, average monthly mortgage complaints were up 21% from the same period a year earlier, according to the CFPB.

Rocke Andrews, president of the Plano, Texas-based National Association of Mortgage Brokers, says during the downturn complaints tended to be about brokers but more recently concern servicers. One reason is that pricing pressure is causing servicer consolidation and efforts to reduce costs, he says.

"What you see now is there are probably five servicers that handle 75% of all servicing," Andrews says. "To make it profitable, you have to scale it up and do as much as you can automated. As a result, as a consumer, more than likely you're going to wind up with one of those automated systems when you call in for information."

Andrews says consumers with a problem can increase chances of a successful resolution by bypassing the automated systems -- often by pressing the "0" key -- and asking the human rep to speak with a supervisor. If that doesn't work, try hanging up and calling back, he suggests.

Complaints come in many varieties, but since 2011, most (51%) are "problems when you are unable to pay," according to the CFPB. Next is "making payments," cited by 31%. Complaints about applying, signing the agreement and receiving a credit offer are all single digit percentages.

Some problems are caused by borrowers confusing the servicer, which collects payments and disburses taxes and insurance, and the holder of the mortgage note. Borrowers may be upset that a servicer won't approve skipping a payment, when the borrower has to approve that, Andrews says.

Another common problem regards partial payments. Sometimes, such as during foreclosure proceedings, the amount owed may change after a payment is mailed and before it is received. The borrower may think payment has been made, when in fact it's been disallowed as a partial payment. New rules require servicers to tell borrowers upfront whether they will accept partial payments may help this problem, Andrews says.

While nearly a quarter of a million complaints to regulators sounds like a lot, Marina Walsh, a vice president with the Washington, D.C.-based Mortgage Bankers Association, notes that problems are typically handled before reaching the CFPB, and the complaint count is modest compared to the number of borrowers. "There are approximately 50 million outstanding mortgages in the U.S. and many more customer escalations or complaints are tracked and logged, then resolved directly by the mortgage servicer," Walsh says.

Walsh said dedicated phone numbers, customer service-friendly websites and better call center monitoring is helping to improve borrowers' experiences with servicers. "On the technology side, servicers have woken up and realized that they need to go digital especially for millennial borrowers," Walsh says. "This means revamping websites to provide more capabilities, offering seamless mobile options and generally moving toward a self-service and self-monitoring model preferred by some many borrowers, particularly Millenials."

• . . . . . . . . . . . . . . . . .
• 
  
• Please contact us if you need help or resources as we are here and happy to help!
• 
  
• Respectfully,
• 
  
• Dana Shafman
• Managing Member
• END Consulting
• (888) 234-7006 Ext 101
• Dana@ConsultingEND.com
• 
  
• www.TheDailyComplaint.com

CITIMORTGAGE

CITIMORTGAGE COMPLAINT:

Submitted:      November 2014

Reported By:     Karim18 in USA

Report Link:   CLICK HERE

I had a family emergency in 2013. I was in the bi-weekly program and asked if they could suspend the one payment, due to emergency. They said I could do a stop payment and then call them to start up again. I called and was told that I would need to send in a letter asking to be placed back into the program (that I paid $300+ dollars to enter). Still no deduction, so I call again...this time I was told to send in a $10 check so they could see the account was active. I did, it was cashed and again no bi-weekly start up. Now I was like 2 and 1/2 months behind (which is odd since I was in bi-weekly which resulted in a extra payment)...now I start getting letters asking for entire owed amount. I don’t have that due to being the only income in the home. I look into the loan modification...go through the entire paperwork crap. You send everything requested, but then it somehow gets lost or is missing paperwork. While going through the paperwork process, the foreclosure process is started. Now any money I want to send in is not allowed. I finally get fed up (10 months of nothing). I call and voice my displeasure with the loan modification process and how I am about to lose my home, because of their lack of honesty...boom next day (I am not kidding), I get the option to make the 3 monthly payments (which was higher than my original payment). I make the payments and now receive my packet. I owed $156k, now they are starting a new 30-year loan taking the fee owed from 10 months (putting it on top of 156k) making the mortgage 173k. I bought my home for 160k, its basically as if I never lived here and am buying a new home. I called all these so called help places and most can not assist because I started a modification...the system is broke and no one will help with this bs scam. I wish I never got involved with these people all they did is push me further behind on payments.

END CONSULTING ADVICE:

The actions of CitiMortgage are not only inexcusable but repulsive as they are actually causing you to fall further behind on your mortgage after simply asking to skip a payment…the exact definite of Unfair Deceptive Abusive Acts and Practices (UDAAP), which are forbidden in the industry!  In my opinion, it is illegal what they have done to you and your solution should include, at a minimum, a lower rate or a principal reduction or a waiving of fees.

 

We routinely look for posts to answer in hopes that it will not only bring optimism to those homeowners and borrowers in distress but also some basic information to assist in fighting the banks like Citi that are "too big to fail" but yet don't appreciate the bailout that we provided in their time of need.  The debt collectors like SPS, SLS, Green Tree, Ocwen and Nationstar are simply just piranhas but they can be beat at their own game too just like the big banks can be defeated.  You CAN win this fight!!!

Thank you as I commend you for taking the first step in asserting your consumer and constitutional rights by complaining about the situation, both with Citi internally and beyond, in an effort to shed light on the abuse and enforce change. With that said, you have overlooked the key aspect to your fight, which is putting your objections in writing in the form of a proper QWR and attaching proof of your consumer and constitutional rights that have been violated; they have certainly been violated in this case since Citi has not only refused payment but also lied about the status of your payment, payment options, and more (FDCPA violation). 

A QWR is an integral tool in getting what you desire and all of the aforementioned mortgage lending and debt collection companies MUST answer your Qualified Written Requests (QWR); if they refuse then you take your fight to all the regulatory agencies outside of Citi that assist in fighting for your rights like the CFPB; it’s a shame that these more than profitable and previously bailed-out companies engage in this type of consumer abuse.

 

My firm and me would be more than happy to educate you as to how to fight for your rights. My firm routinely seeks out complaints online so that we can educate as to how to fight back on our weekday show called "The Daily Complaint” where we review a complaint and how to tackle it successfully.

We reviewed your complaint on the show if you would like to listen, visit www.TheDailyComplaint.com

You can learn more by visiting the CFPB's website and becoming educating about the rights afforded you under the FDCPA, Dodd-Frank and RESPA via the CFPB. Here is a link to the current rules that went effect in 2014 and stronger rules are forthcoming in 2015: http://www.consumerfinance.gov/newsroom/consumer-financial-protection-bureau-rules-establish-strong-protections-for-homeowners-facing-foreclosure/

In the event you have further questions, you can contact me via email or via the website or via phone (full contact information is below) as I would be more than happy to contact Citi on your behalf or with you to determine the status of your loan as well as what options exist for you as a borrower/homeowner!

Every new beginning comes from some other beginning's END

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com

WHY HIRE A PROFESSIONAL TO RESTRUCTURE OR CHALLENGE YOUR DEBT

WHY HIRE A PROFESSIONAL TO RESTRUCTURE OR CHALLENGE YOUR DEBT

Have you been scammed by an attorney or loan modification firm that only took your money?

My phone at END Consulting rings off the hook with homeowners and borrowers that have been passed over by their lender or loan servicer for loan restructuring or debt settlement to include loan modification, short sale, impounded insurance and taxes, and settlement of second mortgages as a result of foreclosure or short sale or unrecoverable market value.  Some of the biggest offenders out there in my personal experiences are Ocwen Loan Servicing, Bank of America, Wells Fargo or ASC, IndyMac or OneWest Bank, Bayview Loan Servicing, Specialized Loan Servicing, Select Portfolio Servicing, Caliber Home Loans...and many more.  The truth is that with the current loan servicing climate, almost ALL homeowners have options for restructuring or settling debt but the reality is that it turns into a full time job and a fierce chess game where strategic positioning is the only key to success, utilizing industry expertise to challenge the debt with nontraditional outside-the-box thinking and solutions.

This strategy is why I have been so successful at challenging, settling and restructuring debt for clients with more than 75 files completed last year and millions of dollars settled or restructured to benefit the homeowner. I have spent the past thirteen months solely focused on working with clients and their creditors to either restructure or settle debt and trust me, it is pretty much the same ridiculousness and runaround on every file.  The process is actually designed to discourage the homeowner from continuing on so that the lender can either hold the borrower to the current predatory and unethical loan or will simply foreclose on the homeowner, which is just sickening!  I actually started helping homeowners back in 2009 and have had tremendous success by utilizing the aforementioned strategy on behalf of violated and/or distressed homeowners and borrowers.  In fact, I have even restructured a multitude of Estates for clients that had lost loved ones since the lenders seem flat out unwilling to modify the debts of those deceased for their beneficiaries, which again is just sickening!

Some absolutely believe that it is not fair that homeowners and borrowers have options but may have to hire a professional to negotiate the deal to obtain the desired results that the government is touting as "free help for homeowners".  While I understand the outrage and fear of being taken advantage of in this situation, I also feel that since this is the largest investment most people will make in their life that it is worth hiring a professional to save the investment.  After all, I am no different than a doctor trying to resolve an unknown health issue for a patient or a lawyer trying to get a client off of a DUI other than that my fees are cheaper and I can boast that I run END Consulting in an ethical manner with honesty and integrity.  I offer a unique suite of services that I have mastered through secondary education, past experiences and industry expertise.  We have all had unfavorable experiences with shady lawyers and questionable doctors as well as other "trusted" professionals so please don't equate corruption with help as there is honest help out there for distressed homeowners.

The point I am desperately trying to make is that hiring a professional is a great thing as long as you hire the right professional.  In fact, I stand by our work here at END Consulting so much so that we solely function as a pay for performance consulting firm where if we do not perform, there is no need to stay on with us as we do not execute long term agreements with clients to further financially obligate them or overburden their financial footing.  Additionally, our fees are flat so there are no surprises or "added fees" unless the clients requests additional services outside of our core competencies where fees are discussed before action is taken.

We take great pride in communicating with our clients to ensure that we can help them prior to any money exchanging hands.  We have also adopted a policy where we contact the lender or servicer at no charge up front to ensure that we have all the appropriate information to determine if the client is a good fit for END Consulting and vice versa.  We take great care to listen to our clients with regards to the desired results to make sure there are no surprises and full transparency through the entire process.  I have built strategic partnerships for END Consulting to include the following professional disciplines:

• FINANCIAL INVESTOR RELATIONS
• MEDIA AND PUBLIC RELATIONS
• JOURNALISM AND LITERATURE
• CONSTRUCTION AND REAL ESTATE
• MORTGAGE AND TITLE
• FINANCIAL PLANNING
• BUSINESS ANALYSIS
• REAL ESTATE LEGAL HELP

I encourage all distressed or frustrated homeowners to contact us to discuss your situation as we never charge a consultation fee to determine if we can assist you in saving your home or restructuring debt.  You will find that our philosophy at END Consulting and manner in which we assist homeowners is both unique and dynamic...give us a call today at (888) 234-7006!

We look forward to putting you on the path to financial freedom...

Dana Leigh Shafman
Managing Member
END Consulting
Toll Free (888) 234-7006
Main (602) 396-5822
Fax (888) 234-7096