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NAMB Calls on CFPB to Reconsider Mortgage Complaint Data Processing

Phil Hall
Jul 16, 2018
NAMB has announced that it will host a full-day seminar on Jan. 16 in San Diego for mortgage professionals who are seeking to be approved for the organization’s newest certification, the Certified Veterans Loan Specialist

NAMB has called on the Consumer Financial Protection Bureau (CFPB) to pursue a further examination of how the agency determines true complaints it receives from the American public on the mortgage process.
In a letter to CFPB Acting Director Mick Mulvaney, NAMB President John G. Stevens recommended that the agency develop a process for companies to reclassify consumers' submissions.
“NAMB suggests the Bureau request the National Multi-state Licensing System (NMLS) identification number that should be on documents or advertisements of the LO,” Stevens wrote, adding that the CFPB had a history of incorrectly assigning blame to mortgage brokers. “When the consumer complaints were examined by NAMB, it was found 90 percent of complaints were registered against lender and bank LO’s, not mortgage brokers.”
Stevens added that he did not believe the CFPB should publicly release any complaint data unless it is verified first by the agency’s staff.
“Mortgages are extremely complex and involve various parties and outside vendors to verify consumer-provided data,” Stevens continued. “The mortgage process can be slowed or halted for a variety of reasons. Was all the application data the consumer provided accurate? Was there an issue with Freddie Mac or Fannie Mae’s underwriting system? Was there an issue with the verification of employment? Was the down payment source accounted for? Was there an appraisal issue? The LO should not be labeled for a complaint because issues out of their control stopped the mortgage process.”

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