CFPB Seeks Input on Draft Monthly Mortgage Statement

Consumer Financial Protection Bureau Seeks Input on Draft Monthly Mortgage Statement
Statement prototype designed to help consumers understand mortgage costs

The Consumer Financial Protection Bureau (CFPB) is seeking public input on a draft monthly mortgage statement that is designed to make it easier for homeowners to understand their loans and avoid unnecessary costs and fees.

“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 Dodd-Frank Wall Street Reform and Consumer Protection Act requires that most mortgage borrowers receive periodic statements containing specified information. Under the Dodd-Frank Act, periodic statements generally must be provided by the creditor, assignee of the loan, or the mortgage servicer that manages the loan. Servicers are businesses that typically collect payments from the borrower on behalf of the owner of the loan. They also handle customer service, escrow accounts, collections, loan modifications, and foreclosures.  Read more.