The Consumer Financial Protection Bureau (CFPB) is proposing a new set of rules that will change how mortgage servicers interact with their consumers. The proposed changes include clarifying billing statements and advance warning of interest-rate changes.
“It’s time to put the ‘service’ back in mortgage servicing,” said CFPB Director Richard Cordray. “For too long, mortgage servicers have not been held accountable to their customers, and the result has been profoundly punishing to homeowners in distress.”
The Housingwire.com article says that CFPB sees these proposed changes as a way to receive more transparency and accountability from the mortgage companies, specifically non-bank lenders, which have historically operated with less regulation than traditional banks.
Other rule changes under CFPB consideration include immediate credit for a monthly mortgage payment and quick consideration or correction of billing for foreclosure errors. The agency also proposes advance warning for so-called forced-placed insurance.
“It is important that the final rules don’t give preference to one business type over any other, nor should they inhibit innovation or discourage new companies from entering the marketplace,” said David Stevens, president of the Mortgage Bankers Association.
A formal proposal of these new rule changes is set for this summer and the finalized version will be release by January 2013, according to the CFPB.
The summer, in fact, will be a busy time for the agency. In addition to its mortgage servicing rules, which it has been warning about for months now, the CFPB is also readying new policies on mortgage complaints and appraisers, among other housing-related issues.