The Consumer Financial Protection Bureau released the draft this week or a new monthly mortgage statement designed to make it easier for homeowners to understand their loans. The bureau is seeking public input on the drafted document, which is designed to outline loan payments for forward borrowers.
The statement, which presents the breakdown of a mortgage payment, is required under Dodd-Frank to include information about the principal loan amount, interest rate, date on which interest rate may next reset, late payments and penalty fees, housing counselors and contact information that can be used to get in touch with the mortgage servicer.
“This draft statement shows consumers the breakdown of their mortgage payments—what money goes to the loan principal, interest, and fees,” said CFPB Director Richard Cordray. “This information will help consumers stay on top of their mortgage costs and hold their mortgage servicers accountable for fixing errors that crop up. Given the widespread mortgage servicing problems we’ve seen over the past few years, consumers need clear disclosures they can count on.”
The CFPB is currently testing a prototype monthly statement with consumers to make it as user-friendly and useful as possible, the agency said in announcing the draft. The agency has not announced any plan for a similar document draft pertaining to reverse mortgage borrowers.
View the draft here.
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Written by Elizabeth Ecker