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Issue link: http://digital.dsnews.com/i/501861
particularly regarding the percentage of complaints verified," Barbone added. e issue of whether complaints are analyzed and probed for accuracy and context is a sticking point for others in the industry as well. "I think the whole report is interesting," Caruso said. "I would like all the servicing company participants to contribute more data so we can get more granular. at may enable us to learn more yet. I'm curious on the amount of relief being given to customers and why, and I'd like to learn more details on whether many of the complaints are really complaints. Our data indicates that many of the complaints are really just inquiries and that other complaints are simply due to the customer not getting the answer they want." Caruso went on to explain that customers typically become upset when denied a loan modification, and the reason for the denials should not be extracted from complaints made to the CFPB. e database, however, allows these complaints to creep into the system without specifying whether the consumer failed to qualify for a loan mod under HAMP or another government program—or whether there was truly an error on the servicer's part. A DESIRE FOR MORE CONTEXTUAL DATA Going forward, the industry seems to accept the idea of a database, as long as analytics are informed and the database continues to improve in providing context to individual complaints. Without context, it is merely an echo chamber for consumers. In the right context, it becomes a positive tool for both consumers and servicers. "I don't think this has changed anyone's approach, but it is concerning that customers will have the ability to say whatever they want and the only public response we will have via the CFPB is a drop down box to explain what may have happened," Caruso added, when discussing the limited remedies available to servicers to respond to reported complaints. "I don't see how this helps anyone. e more detailed data we have the more we can understand what customers issues they have and how to address them," Caruso added. "We may not set the rules for topics like whether a customer qualifies for a modification with HAMP, Fannie, Freddie, FHA, but we can treat customers with respect and show empathy with the issues they do have." Daganhardt, who conveyed a desire to help both the CFPB and the industry with improved data, said there is a wish list so to speak of tools that could help all respective parties with data analysis. One of the areas of concern is the drop-down menu borrowers use when making a complaint. Often, a borrower will misclassify a home equity loan for a mortgage loan, which throws off the reporting. Daganhardt also would like to see standard codes for each "reason a loan goes into default." Currently, database users are able to comment in a free-flow text fashion, but this makes it difficult to structure and organize the data, Daganhardt said. "at free text goes to the servicer as well, and they can act upon it. But, unfortunately, it gives the opportunity to misrepresent complaint trends and volumes before the back-end forensics is completed by the servicers," Daganhardt explained. "If there is more of a survey type of process in the consumer portal, that facilitates more accurate responses by the borrower and maybe even offers some education along that way that would be better for everyone else involved." Daganhardt's desired outcome would be a situation in which an improved question and answer process is implemented to collect and organize the consumer data. "e more intelligent questions that they would be asked would ultimately capture more accurate data from them," Daganhardt explained. Right now, she said, "there are a limited number of drop-down menu options. Borrowers are left to their own devices." Tim Rood, chairman of the Washington, D.C.-based Collingwood Group, said, "I thought the report was insightful and should quiet critics of the industry's customer service." Kim Yowell, SVP and servicing manager for Tulsa-based BOK Financial, echoed Rood's comments. "e aggregated data confirms that the measures the mortgage banking industry has undertaken to address default related customer issues and complaints has had a positive impact on our customers." But in their second act since the CFPB launch, servicers desire something more than numbers. ey want the same thing the CFPB desires: a complete 360-degree view of each borrower who makes a complaint and of the complaint itself. Without more of this granular data, everyone is doing nothing more than chasing numbers in a box. Editor's note: Ed Delgado is president and CEO of the Five Star Institute, parent company of DS News and MReport. "I would like all the servicing company participants to contribute more data so we can get more granular. That may enable us to learn more yet. I'm curious on the amount of relief being given to customers and why, and I'd like to learn more details on whether many of the complaints are really complaints." —Bob Caruso EVP of sales, strategy, and servicing at Black Knight firm, ServiceLink