New Mortgage Rules The Consumer Financial Protection Bureau (CFPB) has issued new mortgage servicing rose double going to effect on January 10 2014. What these rules cover issues from month lease mortgage statements all the way to loan work out and modifications. For more information go to www.consumerfinance.gov .
The rules call for a monthly mortgage statements to be issued including all information about related arrears or a late charges. An explanation of how prior payments wop lied. In addition whenever a consumer applies for a loan modification the servicer is required to work with you the extent possible. Mortgage servicers are required to respond promptly to any requests for pay offs. Mortgage servicers also be required to give you a warning at least two months in advance if you have an adjustable-rate mortgage and a change in that rate will increase your payment.
The servicers are also request not to charge you for insurance you don’t need or over charge you for insurance that you may be required to carry such as force placed hazard insurance. The servicers are required to contact you whenever you’re in trouble and you need help. The services are required to have and implement good customer service policies. Now some of these things sound like they should be already in place is in its good business to have good customer service policies. Its good business to respond to your clients in a timely fashion.
Furthermore, you would think it would be against the law to charge anyone for insurance they don’t need. Nonetheless these abuses have occurred in the mortgage industry iand thankfully there is a new sheriff in town. The services are required to quickly resolve any complaints or request for information. They are also required to allow you to review to request a review all of your mortgage loan modification request. That means if I request is denied for whatever reason then you are you entitled to a review explaining why the loan modification was denied. Which could prove critical because a lot of modifications are denied due to a missing document that can then be resubmitted.
Those who attempted a loan modification know how often documents seem to disappear and never make it to the to the file even though you submitted them multiple times. Now some of these things sound like they should be already in place is in its good business to have good customer service policies. Its good business to respond to your clients in a timely fashion. Furthermore, you would think it would be against the law to charge anyone for insurance they don’t need. Nonetheless these abuses have occurred in the mortgage industry and thankfully there is a new sheriff in town. This could prove helpful however I am NOT hopeful because these are things that the banks have talked about since the a the start of the foreclosure crisis. A lot of this will depend on how much teeth the CFPB place on the new rules.
