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Fewer home-equity borrowers complained about their lenders and servicers last month than during any month in over six years. However, subsequent upward revisions to the numbers are likely.
Home-equity borrowers and loan applicants filed 76 complaints with the Consumer Financial Protection Bureau during September, according to data analyzed by HELN. The bureau typically revises the number of complaints reported up in subsequent months.
That was the fewest complaints filed since April 2017, shortly after complaint tracking began, when the number was just 47.
In August, the CFPB received an upwardly revised 127 complaints, while the total was 106 in September 2022.
Last month’s most complained about company was Bank of America, N.A., where the regulator heard from 11 consumers. However, BofA was the third-largest home-equity line-of-credit lender in 2022.
Wells Fargo & Co. came in at No. 2 with eight complaints filed. The San Francisco-based company previously exited home-equity lending but still services a substantial legacy portfolio.
The biggest HELOC lender, PNC Bank, N.A., saw five complaints in September.
September’s top reason for complaining was “Trouble during payment process,” which was cited 32 times. “Struggling to pay mortgage” was next with 17 complaints, then “Applying for a mortgage or refinancing an existing mortgage.” which was the reason 16 times.
On a quarterly basis, there were 317 home-equity complaints filed during the third quarter, slightly worse than 305 in the second-quarter 2023 but slightly better than 319 in the third-quarter 2022.
