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MORTGAGES TOP CFPB'S CONSUMER COMPLAINT LIST Financial Protection Bureau (CFPB) passed its one-year anniversary and in late July, released its semi-annual report for 2012 highlighting its achievements in the first half of this year. The Consumer which now consists of 889 staff members, spent six months conducting research on various consumer financial products, building and initiating platforms for consumer complaints, supervising and regulating financial entities, and preparing and enacting enforcement actions when businesses do not comply. The CFPB accepts consumer complaints The bureau, through its website, and by phone, mail, and fax. Between July 21, 2011 and June 30, 2012, the CFPB received 55,300 complaints about consumer finance products. Some of the top consumer complaints the first government agency established to protect consumers in the financial marketplace. "Consumers deserve to be treated fairly, and to have someone stand on their side when they are not," said Richard Cordray, director of the CFPB. As for the agency's progress so far, Cordray also spent much of the past six months drafting rules to reform the mortgage finance system and "bring greater transparency and accountability to mortgage servicing," according to the agency. The CFPB is The CFPB has FORECLOSURE ACTIVITY DOWN WITH FEWER BANK REPOSSESSIONS: REALTYTRAC year-over-year and month-over-month, but foreclosure starts told a different story in July, according to RealtyTrac. Foreclosure filings, which include default Overall, foreclosure activity declined notices, scheduled auctions, and bank repossessions, fell 3 percent month-over-month and decreased 10 percent from July 2011. In July, 191,925 U.S. properties received a foreclosure filing. Foreclosure starts, which include default notices or scheduled foreclosure auctions, saw a 6 percent decrease from June but were up 6 percent from a year ago. "U.S. foreclosure activity continued its include an inability to modify or refinance mortgage loans, inability to refinance or consolidate student loans, confusion regarding credit scores, and confusion regarding various terms of credit. The greatest single source of complaints, said, "The CFPB has used the tools at our disposal for the benefit of consumers in the past year, and we pledge to continue to do so as we work to promote a transparent, fair, and competitive consumer financial marketplace." However, the agency, which was established by the highly contentious Dodd-Frank Act, has met with much opposition as it works toward its intended goal. The CFPB currently faces a lawsuit making up 43 percent of all complaints made to the CFPB, was mortgages. A little more than half of the mortgage- related complaints had to do with problems consumers encountered when they were unable to make their monthly payment. When the CFPB receives a complaint, it informs the company involved. The company has the opportunity to respond to the complaint, and the consumer may then either accept or dispute the company's response. As of the date of the report, approximately uneven descent in July as the overall numbers declined on an annual basis for the 22nd straight month, but properties starting the foreclosure process increased on an annual basis for the third straight month," said Daren Blomquist, RealtyTrac VP. "Recent foreclosure activity patterns vary significantly from state to state, often hinging on the level of dysfunction that exists in each state's foreclosure process." Twenty-seven out of 50 states saw their foreclosure starts rise, 16 of which were in judicial states and 11 in non-judicial states. In judicial states, lenders must receive court approval to proceed with a foreclosure. The states with the largest year-over-year challenging its constitutionality. The lawsuit was brought forth by two conservative groups and a lone community banker from Texas that suggest the CFPB holds too much power over who qualifies for home loans. In June, public interest group Judicial Watch filed a Freedom of Information Act lawsuit against the CFPB to gather more information on Cordray's appointment to his post, which was performed by the president without Senate approval. Industry experts have also warned of the 44 percent of company responses were accepted by consumers. Seventeen percent were disputed, and 40 percent of complaints were awaiting consumer reaction. In addition to accepting and monitoring consumer complaints, the CFPB is reaching out to consumers through its Know Before You Owe campaign, which aims to make consumer finance products easier for consumers to understand. 58 increases in foreclosure starts were Connecticut (201 percent), New Jersey (164 percent), Pennsylvania (139 percent), Indiana (83 percent), and Massachusetts (65 percent). Fewer homes were lost to the foreclosure process in July with lenders completing the foreclosure process on 53,654 U.S. properties. The figure is a 1 percent decrease from June and a 21 percent decrease from a year ago. The yearly decrease marks the 21st consecutive month of declines in bank repossessions. According to RealtyTrac, the yearly decrease was also the main reason for the overall decline in foreclosure activity. Thirty-eight states and the District of CFPB's potential harm to the nation's economy. Mark Calabria, director of financial regulation studies at the Cato Institute, estimates the agency has already cost the economy 150,000 jobs because of its impact on the cost of consumer credit. In a recent congressional testimony Calabria expressed his concern that the CFPB's structure "reduces transparency and accountability." He urged that "diligent and constant Congressional oversight is badly needed." Columbia saw a drop in REO activity. States with notable declines include Nevada (71 percent), Virginia (65 percent), California (44 percent), Georgia (39 percent), and Washington (35 percent), all non-judicial states. STAT INSIGHT delinquent mortgages as of the end of June. Source: CoreLogic Months' supply of homes with seriously

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