CFPB considering rules for mortgage servicers
Source: Washington Post
The new federal consumer watchdog agency is slated to announce Tuesday that it is considering several new rules aimed at increasing transparency and accountability in the scandal-ridden mortgage-servicing industry.
The rules would require mortgage servicers to warn homeowners before any interest rate adjustments, provide options for delinquent borrowers to avoid foreclosure, investigate errors within 30 days and improve staff accessibility to consumers, among other things. The Consumer Financial Protection Bureau is seeking business and public comment before formally proposing the rules, which are expected to be finalized by next year.
CFPB Director Richard Cordray is scheduled to unveil the plan for regulation during a speech Tuesday at Operation Hope, a Southeast Washington nonprofit group focused on financial literacy. In a prepared statement, he called the initiative “common sense.”
“For too long, mortgage servicers have not been held accountable to their customers, and the result has been profoundly punishing to homeowners in distress,” Cordray said. “It’s time to put the ‘service’ back in mortgage servicing.”
Read more: http://www.washingtonpost.com/business/economy/cfpb-considering-rules-for-mortgage-servicers/2012/04/09/gIQAp3k66S_story.html
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