Out of 29,100 mortgage-related complaints submitted to the Consumer Financial Protection Bureau in 2022, approximately 400, or two percent, were brought against reverse mortgage companies, according to the CFPB’s Consumer Response Annual Report.
Last year, consumers submitted 300 reverse mortgage complaints.
In their complaints about reverse mortgages, consumers expressed frustration in either getting statements or a payoff amount from their lender or stated that they are having difficulties making a payment or paying off a mortgage. In their responses, companies apologized for the delay and provided the requested information. In other responses, companies requested follow-up information from consumers.
The vast majority of the reverse mortgage complaints were closed with an explanation (i.e., most of the complaints were closed without monetary or non-monetary relief).
Another area of concern reported by the CFPB is mortgage appraisals. “Some consumers stated that they believed they had been discriminated against,” says the Annual Report. “In their responses, companies consistently denied any racial bias in their appraisal process or stated that they could not substantiate the consumer’s claims. However, companies did sometimes revisit the original appraisal and raise it after receiving the consumer’s complaint.”