The Consumer Financial Protection Bureau is taking aim at mortgage “junk fees” yet again, this time in the servicing sector.
The bureau released supervisory highlights addressing what it classifies as illegal junk fees, such as prohibited fees, deceptive notices sent to homeowners, and violations of loss mitigation rules.
“Homeowners cannot just simply switch providers if their mortgage servicer charges them illegal junk fees,” said CFPB Director Rohit Chopra.
“Since mortgage borrowers are captive to a company they never chose to do business with, we are working hard to detect and deter violations of law.”
Servicers were found to have charged property inspection fees banned by Fannie Mae and late fees greater than allowed by their mortgage agreements. They also failed…
By KIMBERLEY HAAS
The U.S. House of Representatives has passed the Middle-Class Borrower Protection Act which would reverse recent changes to fees charged by Fannie Mae and Freddie Mac.
Republicans have been fighting changes to the loan-level price adjustment matrix which were announced earlier this year and scheduled to go into effect on May 1. Rep. Warren Davidson, R-Ohio, who introduced the act, has repeatedly said that the new fee structure is “a socialist redistribution of wealth.”
“It’s a scheme created by the Federal Housing Finance Agency that forces financially responsible homebuyers with good credit to subsidize those with bad credit. Responsible action should never be penalized, and irresponsible action shouldn’t be subsidized. Under this rule, a majority of new…
By KIMBERLEY HAAS
Changes to fees for loans backed by Fannie Mae and Freddie Mac are under scrutiny after recent reports that homebuyers with good credit scores and substantial down payments will pay more starting May 1.
Last week, The Washington Times published an article with the headline “Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages.” Author Dave Boyer, a White House correspondent, wrote that although the changes are part of the Federal Housing Finance Agency’s push to make housing more affordable, they will negatively impact traditional borrowers.
“Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who…
