The Consumer Financial Protection Bureau, or CFPB, has outlined rules it is considering that it believes will help protect mortgage borrowers from being hit by costly surprises or getting the runaround from their mortgage servicer. The CFPB plans to formally propose rules this summer and finalize them in January 2013.
The rules under consideration include requirements for:
- Clear monthly mortgage statements
- Warning before interest rate adjustments
- Options for avoiding costly “force-placed” insurance
- Early information and options for avoiding foreclosure
Another facet of the rules being considered would require servicers to provide delinquent borrowers (or borrowers who are asking for help to avoid delinquency) with direct, easy, ongoing access to employees who are dedicated and empowered to help troubled borrowers.
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