The Consumer Financial Protection Bureau is exploring a set of rules it says would make it easier for consumers to understand mortgage costs and compare loans so they can choose the best deal.
The CFPB is currently seeking public comment on the proposal that would change the loan origination market. The proposed requirements would require lenders to make a no-point, no-fee loan option available to consumers. Under the proposed rule, creditors would have to make available to consumers a loan without discount points or origination points or fees, unless the consumers are unlikely to qualify for such a loan.
Other parts of the proposal include requiring an interest-rate reduction when consumers elect to pay upfront points or fees, set new screening standards for loan applicants, prohibit payment of steering incentives to mortgage loan originators and placing restrictions on the financing of credit insurance.
The public will have 60 days, until October 16, 2012, to review and provide comments on the proposed rules. The CFPB will review and analyze the comments before issuing final rules in January 2013.
An overview of the proposal is available here.
Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio