I am working on a case involving a mortgage servicer that has screwed a consumer into forced place insurance that was unnecessary. We are working with the servicer to correct its system and train its agents but the consumer no longer wants to deal with the servicer since they kept giving her the run around re: the forced place insurance issue, not providing corrected statements, and not reversing premiums from escrow. There are lots of issues with this servicer and I expect to see more complaints arise.

Do consumer have rights to change mortgage servicers based on repeat errors/run around?

Is this a servicer of your loans??? If it is, the consumer should not be the one that is concerned.

If it is not, why is the bank involved? The customer needs to be visiting with the AG's office and not your bank.

If your profile is correct, it appears you work for the state.

Banks that outsource mortgage servicing generally have all mortgage loans handled by one servicer. It would be unusual to have more than one servicer and even more unusual to allow a customer to select a different one.

Thank you! Yes, I am from a state agency. We seem to be receiving more complaints on servicers lately and weren't sure about the consumer protection laws re: servicers. I didn't think consumers had a choice unless they refinance with another lender but still could end up in the same situation.

Thanks again for the insight.

The owner of the loan choses the servicer.
So if the originating bank sells the loan to an investor with the servicing rights, the new investor choses the servicer.

Therefore, basically you're correct that the only way to change the servicer and guarantee where the loan would stay for servicing would be to refinance the loan with a bank that keeps their loan servicing in-house.

In my experience, consumer complaints ebb and flow in time with escrow disbursement and analysis periods.