Housing Finances 8 Proposed Rules to Keep Mortgage Lenders in Check Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on Tumblr (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Mint.com Published Apr 24, 2012 2 min read Advertising Disclosure The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service. The Consumer Financial Protection Bureau just rolled out eight new rules it’s hoping will keep mortgage lenders in check and future homeowners in the black. The rules aren’t final yet – the agency pitches them to Congress this summer – but they could change everything about the borrowing experience. “The mortgage servicing rules we are considering reflect two basic, common-sense principles – no surprises and no runarounds,” said CFPB Director Richard Cordray in a statement Tuesday. “For too long, mortgage servicers have not been held accountable to their customers, and the result has been profoundly punishing to homeowners in distress. It’s time to put the ‘service’ back in mortgage servicing.” 8 New Rules: – Clear Monthly Mortgage Statements: Statements will have everything out in the open – a breakdown of payments by principal, interest, fees, and escrow; the amount of and due date of the next payment; and, for delinquent borrowers, alerts and information about counselors who can help them work with servicers and avoid foreclosure. – Warning Before Interest Rate Adjustments: Servicers would be required to provide disclosures before the interest rate changes on most adjustable-rate mortgages. – Options for Avoiding Costly “Force-Placed” Insurance: Bank of America and Citigroup are already at the center of a New York state probe into claims they are among several big banks that have been overcharging consumers for insurance. This rule would give the consumers more rights including requiring servicers to give advance notice and pricing information before charging consumers for this insurance. – Early Information and Options for Avoiding Foreclosure: This is all about giving customers a chance to modify their loans if they fall into default. Better ways to handle consumer accounts. – Payments Immediately Credited: Servicers generally would have to credit a consumer’s account promptly after receiving payment. – Records Kept Up-to-Date and Accessible: Minimize errors, prevent document loss, provide accurate information to borrowers, and assist with error resolution. – Errors Corrected Quickly: Another time suck the CFPB hopes to eliminate by requiring lenders to respond promptly to customer complaints. – Direct and Ongoing Access to Servicer Foreclosure Prevention Team: Keep lines of communication open by giving easy access to employees for struggling homeowners. “8 New Proposed Rules to Keep Mortgage Lenders in Check” was originally run as “The Consumer Protection Bureau Wants to Give New Rights to Homeowners” and was provided by BusinessInsider.com. Previous Post MintFamily with Beth Kobliner: When Should Tykes Become Techies? Next Post Spring Gardening on the Cheap Written by Mint.com More from Mint.com Browse Related Articles Mint App News Intuit Credit Karma welcomes all Minters! Retirement 101 5 Things the SECURE 2.0 Act changes about retirement Home Buying 101 What Are Homeowners Association (HOA) Fees and What Do … Financial Planning What Are Tax Deductions and Credits? 20 Ways To Save on… Financial Planning What Is Income Tax and How Is It Calculated? Investing 101 The 15 Best Investments for 2023 Investing 101 How To Buy Stocks: A Beginner’s Guide Investing 101 What Is Real Estate Wholesaling? Life What Is A Brushing Scam? Financial Planning WTFinance: Annuities vs Life Insurance