CFPB Highlights Servicing Problems Military Families Face
One-third of consumer complaints filed by military families are mortgage related, according to the Consumer Financial Protection Bureau.
“At listening sessions around the country, concerned military families have told me about the painful consequences of poor mortgage servicing, sloppy lender recordkeeping and inconsistent foreclosure practices,” according to Holly Petraeus, assistant director for the CFPB office of servicemember affairs.
In a blog, Petraeus notes that other homeowners have problems with servicers. “But the demands of military service sometimes increase the severity of the problems or limit the solutions to address them.”
Her Jan. 16 blog points that the CFPB has issued a new servicing rule that bans dual tracking and requires servicers to consider all options that might help troubled borrowers stay in their homes. And servicers must have policies in place so they don't lose paperwork.
“For military families, this means that when they seek help for a troubled mortgage or have to move because of Permanent Change of Station orders, they will get fewer nasty surprises and face less risk of losing their home,” she says.
Petraeus also advises service members and their spouses to talk with military personal financial officers or lawyers with the Judge Advocate General's corps if they run into problems with servicers.