Consumer Financial Protection Bureau Proposes New Rules for Mortgage Servicers

The brand new federal institution, Consumer Financial Protection Bureau, will be proposing new rules this summer for mortgage servicers to adhere by in order to further protect the consumers. This should only truly hinder the mortgage servicers that, in the past, have not had the best record of keeping their consumers aware of their current mortgage standings or supplying them with enough information to make appropriate decisions. The theme of the new rules is keeping consumers out of the dark when it comes to their mortgage details. Some idea as to what the rules will contain have been released and have been recapped below:

• Easy to read monthly statements so that consumers can get a breakdown of their payments in terms of principal, interest, fees and escrows
• Advanced disclosures of rate adjustments so consumers who have Adjustable rate mortgages, or other forms of mortgages allowing for fluctuating rates, will know before the change and have alternatives for payments beyond their budgets
• Advanced notices on "forced-placed" insurance, such as fire insurance, that the servicers are able to charge the consumer if they do not purchase it by themselves. This will allow the consumer to make the decision to find it on their own in a more affordable manner before they are charged without their knowledge by the servicer.
• Further attempts to help the consumers in times of financial distress. This is in hopes to decrease the level of foreclosures and provide accurate advice to homeowners in need before it is too late.
• Crediting money back to consumers accounts promptly and without the usual five to ten day grace period
• Customer service will be increased so that any errors are looked at immediately and discussed with the consumer. This will also transition into delinquent borrowers or those close to becoming so.