Consumer Financial Protection Bureau to Overhaul Mortgage Process The Consumer

By Liz Clinger Updated on 7/6/2012

Financial Protection Bureau is a recently formed regulator with intentions to improve fairness and clarity in the home mortgage market, by remaking the mortgage process for the consumer, making it clear and easy to understand the kind of loan the borrower is getting and its true cost.

The bureau director, Richard Cordray is a former Ohio attorney general and is determined to prove that this new bureau can help borrowers without over-restricting banks in red tape. According to an interview in his office near the White House, he made statements that his intention is to “restore trust in the consumer financial marketplace.”

Changes being proposed this summer to put rules into place on giving consumers a more complete good faith estimate of costs that are easily understood. Also, to provide consumers with a single disclosure form that clearly shows their interest rate, any changes it could take and the full cost of closing before completely closing the sale. Also being proposed is to have mortgage servicers provide better service, clear information and more options for those facing foreclosure.

The Mortgage Bankers Association provided testimony to congress in general support of the bureaus efforts with favor to a slow approach, and some opposition to a few of the proposals the bureau has come up with.

Other than mortgage matters, the bureau is also set to address student loans and credit card company complaints as well as a variety of financial issues within the country.