August 14, 2012
The Washington Post and Bloomberg News are reporting on a set of proposed rule changes by the Consumer Finance Protection Bureau that will, if implemented, change the way banks and customers interact on FHA loans, conventional mortgages and VA guaranteed loans.
According to an article on WashingtonPost.com, the proposed regulations would “go beyond the standards for mortgage servicing that state attorneys general wrote into a court settlement reached with major banks on March 12” and the measures would also modify existing rules in the Real Estate Settlement Procedures Act (RESPA).
At the Consumer Finance Protection Bureau (CFPB) official site, you’ll find a list of proposed changes which includes a requirement for monthly mortgage statements with clear details on loan amounts, the amount due, and how payments are applied to the principal and interest.
There is also a proposed requirement for interest rate adjustment warnings–as much as half a year or more notice “before the first rate adjustment, as well as earlier and improved notices before rate adjustments causing an increase in a consumer
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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