With new mortgage regulations due to
be implemented in less than a month, the Consumer Financial Protection Bureau (CFPB)
has released a set of materials designed to educate both homebuyers and
homeowners about the new regulations and how they can be used to protect
homeowners and ease the home buying process.
CFPB also released a manual summarizing the new regulations and designed
to be used by housing counselors.
materials, all available on the Bureau’s website,
explain what a Qualified Mortgage is, why the category was designed, what it
does for consumers, and how to find one in the mortgage market. Consumer rights under new rules effecting
mortgage servicers are also explained, as are ways to gather information about
an existing loan and to get help if the rules are violated.
materials are in several formats:
Factsheets: There is a two-page factsheet with
an overview of all of the new consumer
protections in the Bureau’s mortgage rules.
It explains what a WM mortgage is and why it protects the borrower
including an explanation of its protections against steering and high
fees. It also lays out the consumer
protections afforded borrowers under new servicing rules and explains how to
file a complaint with CFPB for any violations of the rules. A
second factsheet is a summary of the new procedures to facilitate borrower’s
access to foreclosure avoidance options.
Tips: There are separate tip sheets homebuyers looking
for a mortgage, for homeowners on how to get the most out of their mortgage,
and one for troubled homeowners facing foreclosure.
also has added questions and answers about the regulations to its interactive AskCFPB
website tool and reminds consumers that its website also offers tools to find
local housing counseling agencies to answer their questions or address their
concerns. Consumers that have an issue with consumer financial products or
services, such as a mortgage, can also submit a complaint on the site.
“Taking on a mortgage may be the largest financial
obligation of a consumer’s lifetime,” said CFPB Director Richard Cordray. “We
want to make sure that potential homebuyers have the information they need to
make responsible decisions and that current borrowers know about their new
Bureau says it is working with industry, housing counselors, and consumer
groups to promote a smooth implementation of the new rules. Most of the rules, including the new Qualified
Mortgage regulation, go into effect on January 14.