The Consumer Financial Protection Bureau (CFPB) and Consumer Housing Loan Association (CHLA) have jointly released seven rights it believes should be afforded to consumers during the mortgage process. The rights are based off of previous consumer advocacy letters sent to the CFPB, and are designed to protect consumers from exploitation and ensure that they receive fair and transparent mortgages.
The seven rights that consumers should expect during the mortgage process include:
• Disclosure of Fees: Consumers should receive clear information about all the fees that apply to their mortgage ahead of time.
• Timeframe for Submission of Documents: Consumers should be given a specific timeframe for the submission of any documents that are required to complete the mortgage process.
• Clarification of Transactions: Consumers should be provided with information on the nature of the transaction, as well as an explanation of rates and payment schedules.
• Right to Dispute: Consumers should be informed of their right to dispute any part of the transaction, if they feel they have been treated unfairly.
• Benefiting Monies: Consumers should be informed of any additional monies they are entitled to receive after the sale, such as funds from down payment assistance programs.
• Ability to Repay: Consumers should receive clear information about loan terms, payment schedules, and any changes that may occur to the payments over time.
• Right to Servicer: Consumers should be made aware of the rights they have to choose a loan servicer or lender.
These rights are intended to provide transparency and proper protections to consumers in order to ensure they receive fair and equitable mortgages.
You can read this full article at: https://www.housingwire.com/articles/chla-releases-consumer-mortgage-bill-of-rights/(subscription required)
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