Current homeowners may soon be given additional information on their mortgages and interest rates. The Consumer Financial Protection Bureau disclosed that they would like to change the current mortgage rules. This change will help consumers by offering them an accurate presentation of their mortgage amount and the principal paid.

These new rules will be welcomed by homeowners who have tried and failed to obtain information from their mortgage lender. This transparency is designed to help homeowners who are attempting to refinance or modify their home loan to prevent a foreclosure.

New Rules Being Proposed:

• Lenders will be required to send monthly statements detailing payment amounts including the amount of interest owed, escrow, and any fees that have been applied to the loan.
• Lenders will be required to inform homeowners about an increased adjustable interest rate seven months prior to the change of interest.
• Lenders will be required to credit mortgage payments the same day the payment is received.
• Lenders will not be allowed to charge homeowners for property insurance unless they have notified the homeowner and have reasonable proof that the borrower’s home insurance has been dropped.
• Lenders will be required to drop the forced insurance and refund any payments within 15 days of a homeowner providing proof of their own insurance policy.
• All lenders will be required to respond to a homeowner who requests information or files a complaint within five business days.

The Consumer Financial Protection Bureau’s rule changes will severely impact the mortgage industry and aid all homeowners. The goal is to provide all homeowners with increased transparency that is easily understood regarding payments and interest rates.

The changes are required by the reforms that were enacted by the 2010 Dodd-Frank Act. Wall Street reforms ushered in with the 2010 Dodd-Frank Act. Mortgage industry analysts have indicated that all lenders will be impacted by the changes due to the requirement of transparency with borrowers and the need to improve customer relations.