Tag Archives: Consumer Financial Protection Bureau

Higher-risk mortgage loans may have a new set of rules to go by when it comes to appraisals. A proposed rule from six federal agencies would set out new requirements when conducting appriasals for higher risk mortgages. For example, the rule would require creditors to use a licensed or certified appraiser when preparing reports based on the physical inspection of a property.

The Consumer Financial Protection Bureau (CFPB) released Wednesday a new proposed rule that would require mortgage lenders to provide home loan applicants with appraisal reports to determine how the value of a property was determined. CFPB proposed the rule in response to a provision of the Dodd-Frank Act that requires creditors to provide mortgage applicants with a copy of written appraisals and home value estimates. The newly-proposed rule would require that creditors inform applicants of their right to receive a free copy of appraisal reports and home estimates.

Clearer monthly mortgage statements, warnigns before interest rates adjust, quick correction of errors - these are among the proposed rules for mortgage servicers from the Consumer Protection Financial Bureau. According to a commentary from Fitch Ratings, these new rules, if implemented, would set consistent standards for residential servicers, but the rules ""will also further increase compliance costs for the industry and potentially drive further consolidation within mid to smaller servicers.""

The Consumer Financial Protection Bureau (CFPB) proposed two notices with rules designed to protect homeowners from surprises or mistakes made by their mortgage servicers. CFPB first announced in April that it was considering several proposals to implement requirements laid out in the Dodd-Frank Act, the bill that created the bureau.

The Consumer Financial Protection Bureau recently passed its one-year anniversary, and Monday, the agency released its semi-annual report for 2012 highlighting its achievements in the first half of this year. Between July 21, 2011 and June 30, 2012, the CFPB received 55,300 complaints about consumer finance products, according to a press release. Some of the top consumer complaints include, inability to modify or refinance mortgage loans, inability to refinance or consolidate student loans, confusion regarding credit scores, and confusion regarding various terms of credit. The greatest single source of complaints, making up 43 percent of all complaints made to the CFPB, was mortgages.

Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), laid out the agency's aims to reform mortgage lending standards before a Congressional subcommittee Tuesday. Speaking before the House Oversight and Government Reform Subcommittee on TARP, Financial Services, and Bailouts of Public and Private Programs, Cordray acknowledged that although the Dodd-Frank Act has had a hand in improving most consumer lending markets, tight mortgage lending standards have kept creditworthy borrowers out of homes.

Financial reform advocates have two birthdays to celebrate on Saturday. This weekend marks the one-year anniversary of the watchdog Consumer Financial Protection Bureau and the two-year anniversary of the Dodd-Frank Act, the sweeping financial reform law that spawned it. Their stories run parallel to each other – and rightly so. The consumer bureau squeaked past partisan gridlock this time last year, just one year after Democrats, then in the majority of both houses of Congress, cleared Dodd-Frank for the president’s signature.

Servicers received higher scores from customers this year compared to 2011, according to a study from J.D. Power and Associates Thursday. On a 1,000 point scale, overall satisfaction with primary mortgage servicers increased to 725 from 718 in 2011. The study looks at four areas to gauge customer satisfaction: billing and payment process; escrow account administration; website; and phone contact. Overall satisfaction among customers who are considered to be at-risk improved the most, increasing by 27 points from last year.

Lake Research Partners released the results of an opinion poll showing that financial reforms enacted in recent years remain popular with potential voters. In light of events leading to 2008's financial meltdown, potential voters seem to overwhelmingly favor financial reform laws designed to prevent abuse. Nearly three-quarters (73 percent) of respondents favor the Dodd-Frank financial reforms, while only 20 percent expressed disagreement.

The Consumer Financial Protection Bureau (CFPB) proposed mortgage disclosure forms designed for understanding on Monday. The forms are a result of research, testing, writing, and review and are being created to help consumers comprehend the terms of their mortgage and the costs involved. The proposed forms are part of the agency's Know Before You Owe project and are to be provided after applying for a loan and before closing.