The Consumer Financial Protection Bureau received just over 30,000 consumer complaints about mortgages during 2025, with 96% found to be actionable, according to a report published by firsttuesday Journal on May 8, 2026. The analysis reveals a troubling 17% increase in complaints across all mortgage types compared to the previous year, with borrowers struggling most to navigate the payment process and reach responsive service representatives.

More than half of all complaints centered on difficulty during the payment process, while one-quarter related to an inability to repay the mortgage. Another 10% referenced applying for a mortgage and 8% referenced closing, with 6% involving credit report issues. The payment-related complaints specifically included trouble reaching service representatives, conflicting information from different service representatives, rude service representatives, and unanswered communications. Borrowers also reported instances of dual tracking — when a servicer simultaneously processes a loan modification or forbearance application while pursuing foreclosure sale. The report notes that VA-guaranteed mortgages saw the biggest increase, likely tied to the long government shutdown and staffing problems, and that FHA-insured and VA-guaranteed mortgages received a disproportionally high number of complaints compared to conventional mortgages.

In resolving these complaints, mortgage companies — including lenders, servicers, and mortgage loan originators — provided explanations for 91% of cases, usually accompanied with a written apology. The report states that companies offered administrative responses with reasoning for 3% of cases, non-monetary relief for 3%, monetary compensation in 2%, and no response for 1%. When monetary compensation was provided, it included reversing fees found to be incorrectly charged, such as refunding application fees when service representatives failed to respond to completed mortgage applications, overcharges in escrow payments, and late fees charged when borrowers couldn't make payments on servicers' websites during a cyber incident.

The surge in complaints reflects deeper systemic issues in how mortgage companies communicate with and serve borrowers, particularly during financial stress. The report emphasizes that mortgage loan originators need to create and maintain procedures for every step of the mortgage process, from inquiry to application, escrow to closing, selling the mortgage to servicing, while keeping communication channels open. Successful MLOs, according to the report, conduct annual policy reviews, regular employee regulatory training (quarterly or at minimum annually), quality control reviews of loan samples, require borrower education through clarity of mortgage costs, and produce trend reports to address complaints. The report points to California's Homeowner Bill of Rights as a model, which prevents dual-tracking foreclosure, robo-signing foreclosure documents, and more than one point of contact that can mislead homeowners.

Violations carry real consequences: mortgage servicers who break foreclosure law may have to pay homeowners amounts sufficient to cover economic damages, including attorney fees and court costs. The report's bottom line is clear — compliance doesn't prevent all consumer complaints, but it goes a long way toward happier customers and borrowers. With complaint volumes climbing and borrowers increasingly frustrated by unresponsive service, staying ahead of state and federal mortgage law changes isn't just good practice — it's essential to avoiding costly violations and keeping customers.