Mortgage Statements to Get Consumer-Friendly Makeover
April 10, 2012
The Consumer Financial Protection Bureau announced it will be offering up new rules for mortgage servicers aimed at making monthly mortgage statements more transparent in disclosing fees or changes in a loan.
"For too long, mortgage servicers have not been held accountable to their customers, and the result has been profoundly punishing to home owners in distress," says Richard Cordray, director of the consumer bureau. "It's time to put the 'service' back in mortgage servicing."
Servicers will be required to provide more details in monthly mortgage statements. For example, the agency is considering a requirement that servicers offer a breakdown of mortgage payments by principal, interest, and fees in the statements. Also, servicers may soon be required to itemize fees and charges part of a loan and include warnings to consumers about possible late fees. The agency is also seeking a rule that statements must contain warnings about any future interest rate changes and penalty fees if a mortgage is paid off early.
The new rules are expected to take effect January 2013.
Source: “Consumer Bureau to Crack Down on Mortgage Servicers,” CNNMoney (April 10, 2012)
Updated: November 25, 2020