In June, the Consumer Financial Protection Bureau (CFPB) launched an enhanced version of its database of consumer complaints about financial companies–mainly lenders, banks and credit card issuers.
Nearly 8,000 complaints were posted, a tiny fraction of the 627,000 complaints it has fielded since 2011. Of those, more than one-fourth were from mortgage borrowers, revealing a bottomless pit of frustration with lenders and servicers. If you have a complaint, the CFPB can help.
Meanwhile, MSN has compiled a list of seven recurring mortgage problems that borrowers face, according to the complaint files and includes suggestions for how to address them.
I can’t tell my clients this enough – check your credit score regularly. Your credit score is partially derived from the information on your credit report, and it is one factor that a mortgage lender will use in determining whether you qualify for financing.
I was working with a client recently who knew their credit score and didn’t think it allowed them to qualify for a home loan. I encouraged them to go ahead and pull the full credit reports and review them.
In doing that they found a number of issues in their credit history that did not originate with them. This happens sometimes, and it’s one of the reasons you need to check your credit report, not just your credit score.
They were able to work with Credit Counseling of Arkansas to get the discrepancies removed from their credit history. This resulted in an dramatic improvement in their credit score.