On April 1, 2016, the CFPB published its 2015 Consumer Response Annual Report. This annual report summarizes trends the CFPB has identified from 271,600 complaints that it accepted from financial product consumers during 2015. These complaint data can be a useful source of insight for banks and lenders to identify general areas that require attention with regard to mitigating Fair Lending risk and CRA risk within mortgage lending.
Complaints on mortgage products represented the third highest volume by product, following debt collection and credit reporting. About 80 percent of these mortgage complaints were related to payment difficulties, such as the availability of loan modification and other potential drivers of Fair Servicing risk. An additional 17 percent of mortgage complaints related to the process of obtaining mortgage credit. The data indicate that lengthy application processes, fees, poor communication and other factors of the approval process contribute to a poor consumer experience with unfavorable Fair Lending implications for financial institutions.
The patterns identified by the public complaint data combined with internal data can be critical sources of insight for banks and mortgage lenders to promote a consumer experience that helps them achieve their financial, operational, Fair Lending, CRA and other relevant business goals.