Don’t Take Your Eye Off The Consumer

Kevin Brungardt, Chairman and CEO of RoundPoint Mortgage Servicing Corporation (RoundPoint), one of the nation’s largest mortgage servicing companies, released a statement today related to a recent report by Inside the CFPB that consumer complaints lodged with the Consumer Financial Protection Bureau (CFPB) fell during the fourth quarter, in some cases by double digits.

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“Obviously, this is good news, both for consumers and the industry, but it cannot be an excuse for lenders or servicers to lessen their efforts to provide an excellent customer experience,” Brungardt said. “We would like to believe that the drop in complaints is the result of an industry coming to grips with the new regulatory demands, but there are many other contributing factors that have almost certainly played a role.”
According to a story by Thomas Ressler of IMF Pubs, consumer complaints about the application or origination process fell by nearly 26%, with consumer disputes of a company’s response to a complaint dropping by more than 45%. Consumer problems with loan modifications fell by nearly 24% and servicing complaints fell by more than 23%.

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“Fewer consumer complaints is always good,” Brungardt said. “While this data is very interesting, American consumers are traditionally very distracted during the holidays and may find less time to complain about our industry online. In addition, Fannie Mae and Freddie Mac typically have moratoriums on foreclosures during the holidays, which could serve to further reduce online complaints. The real test of consumer attitudes toward our industry will be evident in the trends we see over the remainder of the year.”

RoundPoint is a fully-licensed Agency and Non-Agency subservicer for commercial banks, credit unions, mortgage companies and hedge funds. RoundPoint currently services over $60 billion worth of mortgage assets, some of which it owns but the majority of which is subservices for loan originations nationwide. The firm provides a superior suite of end-to-end services, including loan boarding, escrow administration, cashiering, investor reporting, member services, and default management. Its leadership team works directly with investors to design a customized servicing approach that provides the best possible outcomes for borrowers.

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