CFPB targets ‘junk fees’ charged by mortgage lenders at closing

In a recent announcement, the Consumer Financial Protection Bureau (CFPB) revealed its plan to focus its regulatory scrutiny on three key areas within the mortgage industry. Mortgage lenders across the board are advised to prepare for upcoming examinations and potential enforcement actions related to discount points, lenders’ title insurance, and credit reports. This indicates a heightened level of oversight and monitoring from the CFPB aimed at ensuring compliance and consumer protection within the mortgage lending sector.

* The CFPB has identified discount points as a key area of interest for regulatory scrutiny, signaling potential investigations and enforcement actions targeting this common mortgage practice.
* Lenders’ title insurance is also under the CFPB’s microscope, as they aim to assess the transparency, pricing, and overall compliance of these insurance products offered by mortgage lenders.
* Credit reports are another focal point for the CFPB, with plans to closely examine how lenders are using consumer credit information in the mortgage underwriting process, aiming to uphold fair lending practices and consumer protection.

Mortgage lenders should be prepared to face increased scrutiny and oversight surrounding these crucial aspects of the mortgage industry, as the CFPB ramps up its regulatory efforts in these targeted areas. Stay informed and compliant to mitigate any potential risks associated with these examinations and ensure adherence to regulatory guidelines.

You can read this full article at: https://www.housingwire.com/articles/the-cfpb-is-going-after-junk-fees-mortgage-lenders-charge-at-closing-this-could-get-ugly/(subscription required)

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