A new CFPB report, “A snapshot of servicemember complaints,” focuses on issues related to VA mortgage refinancing.
The report indicates that as of November 1, 2016, the CFPB had received over 12,500 mortgage complaints from servicemembers, veterans, and their dependents. The CFPB determined based on a key word search of complaint narratives that approximately 18% (about 1,800) of those complaints concern refinance issues.
According to the report, the issues raised in the complaints involve aggressive solicitations, misleading advertisements, and “failed promises” due to processing delays that caused rate locks to expire or otherwise resulted in less favorable terms than expected; a lack of clarity regarding underwriting requirements to obtain a loan; and poor communications causing consumer confusion about changes to monthly payments and escrows.