CFPB Reports on Mortgage Complaint Trends in New York and New Jersey

On January 29, the Consumer Financial Protection Bureau released a snapshot report of consumer complaints to provide a high-level overview of the trends in complaints it has received over the past 24 months. The report is split into two sections – a summary of the volume of all consumer complaints received by the CFPB per state and consumer financial product type, and a highlight of mortgage-related complaints.

The CFPB’s snapshot reveals it received 7 percent fewer consumer complaints in 2018than in 2017. Between November 2016 and October 2018, New Jersey ranked 7thnationwide for most consumer complaints per 100,000 residents, while New York State ranked 13th. Ultimately, New York experienced a 5 percent decrease in the volume of consumer complaints in 2018, while New Jersey complaints decreased by 9 percent. One of the most significant trends the CFPB observed is a 15 percent decrease in total mortgage-related complaints across the county.

New Jersey remains a hotbed for mortgagerelated complaints, ranking 3rd among the states as measured per 100,000 residents, while New York also finished near the top at 10th. Although New Jersey witnessed a 17 percent decrease in mortgage-related complaints, New York experienced an even more substantial 39% reduction.

Overall, based on consumer narratives, the CFPB reported that 42 percent of mortgage-related complaints across the county arise from issues related to servicing, specifically, consumers reporting trouble during the payment process. These complaints range from issues regarding misapplication of payments to alleged failure of servicers to issue periodic statements.