Who Is The Consumer Financial Protection Bureau And Why Are They Important To You?
The Consumer Financial Protection Bureau (CFPB) was established in 2011 and among other things is tasked with protecting consumers from irresponsible mortgage lending. It requires lenders to ensure prospective buyers can repay their mortgage. The rule also protects borrowers from risky lending practices such as “no doc” and “interest only” features that contributed to many homeowners ending up in delinquency and foreclosure after the 2008 housing collapse.
The CFPB requires lenders to qualify borrowers by collecting financial information, which once supplied by the borrower is verified by the lender. A borrower has to have sufficient assets or income to pay back the loan and lenders cannot charge excess fees, have toxic loan features and must cap how much income can go toward debt.
Congress created the CFPB to ensure that reckless lending practices would never happen again with a simple message to American families: We’ve got your back.
• Thus far, CFPB enforcement and supervisory efforts have resulted in approximately $14.4 billion in relief for consumers, and $1.7 billion in civil penalties.
• The bureau has delivered economic redress to more than 183 million consumers and consumer accounts.
• Know more about the CFPB and what they can do for you by going to their website. These guys are tough. The CFPB is your mortgage lending watch dog and believe me, if you’re not happy with your lender and you file a complaint, your lender will suddenly sit up and take notice.