CFPB Aims To Educate Consumers About Its New Mortgage Rules

Posted by Patrick Barnard on December 19, 2013 No Comments
Categories : Residential Mortgage

The Consumer Financial Protection Bureau (CFPB) has launched a nationwide campaign to educate the public about its new mortgage rules going into effect Jan. 10.

Specifically, the bureau is releasing new educational materials by way of its website, including a new Guide for Housing Counselors that will help counselors better understand the new federal protections. This, in turn, will enable them to help borrowers pursue all possible options before beginning the foreclosure process. In addition, the CFPB will be offering training to housing counselors so that they are completely familiar with the new rules.

The CFPB is providing a number of different documents outlining tips for homeowners and homebuyers, so that they better understand their rights under the new rules. These tips will cover every stage of the mortgage process – from taking out a loan to paying it back. The tips also include recommendations for troubled borrowers facing foreclosure.

The bureau has also published a FAQ on its website that answers many basic mortgage-related questions. The new FAQ, dubbed ‘AskCFPB,’ includes an interactive online tool designed to answer consumers' most frequently asked questions in plain language.

As recently announced, the bureau has also added a new tool to its website that helps consumers find local housing counseling agencies that can answer their questions, or address their concerns. Consumers who have an issue with consumer financial products or services, such as a mortgage, can also submit a complaint.

In addition, the bureau has published a fact sheet with an overview of all of the new consumer protections in the new mortgage rules. The CFPB has also published a summary of the new procedures to facilitate borrowers' access to foreclosure avoidance options.

‘Taking on a mortgage may be the largest financial obligation of a consumer's lifetime,’ Richard Cordray, director of the CFPB, says in a release. ‘We want to make sure that potential home buyers have the information they need to make responsible decisions and that current borrowers know about their new protections.’

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