The overall level of consumer complaints to the CFBP is declining -- and that's good news for the industry
On the Feb. 1 episode of the Lykken on Lending Internet radio show I host, guess commentator Paul Muolo gave us a rundown of some of the latest news in the mortgage industry. One important item of news that he brought to our attention was the fact that – although there is some variability in the numbers – complaints from consumers to the CFPB have been steadily declining. So, what's the big deal about that? Why should it matter to us as mortgage professionals?
Of course, there is a direct and immediate impact on your organization if the complaint is filed against you, but I would argue that a decline in complaints overall – even if your organization hasn't received any complaints anyway – is good for the industry. Why? Because more complaints will likely lead to stricter regulations.
The fact that consumer complaints are declining gives me hope for the industry. It tells me that we are behaving more ethically and transparently with consumers and, greater still, that our behavior is being noticed by consumers and trust with the general public is being rebuilt. If we want to free up our resources and bounce back from the hits we've taken from excessive regulations, we need to care about consumer complaints. If we can show that the public is trusting the industry again, we might just get some of that freedom back.
Of course, there is a direct and immediate impact on your organization if the complaint is filed against you, but I would argue that a decline in complaints overall – even if your organization hasn't received any complaints anyway – is good for the industry. Why? Because more complaints will likely lead to stricter regulations.
The fact that consumer complaints are declining gives me hope for the industry. It tells me that we are behaving more ethically and transparently with consumers and, greater still, that our behavior is being noticed by consumers and trust with the general public is being rebuilt. If we want to free up our resources and bounce back from the hits we've taken from excessive regulations, we need to care about consumer complaints. If we can show that the public is trusting the industry again, we might just get some of that freedom back.
