CFPB's latest toolkit gets good response [VIDEO]
Though the last time the Consumer Financial Protection Bureau released a guide to help consumers didn’t go well, the agency’s latest toolkit for prospective homeowners has had a much warmer response.
New tool designed to help consumers understand disclosure documents
The latest innovation from the CFPB, part of its “Know Before You Owe” initiative, will replace an older guide with a new toolkit designed to assist people throughout the home-buying process, and help them take advantage of the new Loan Estimate and Closing Disclosure forms that lenders are required to begin providing in August.
The guide will help consumers understand how much they will pay for real estate settlement services, discover what affordable means to them and decide on their best mortgage options. The toolkit contains interactive worksheets and checklists, research tips to help people find the best information and conversation points to bring up while speaking with lenders.
Toolkit has had a positive reception thus far
Though the Rate Checker tool released early this year by the CFPB wasn’t well received at all, the latest consumer tool has had some warmer reactions. The Mortgage Bankers Association, for example, has been mostly supportive of the CFPB’s newly released toolkit. David Stevens, president and CEO of the mortgage bankers’ group, explained that the organization was pleased with the new guide, and looks forward to offering commentary on how to improve it.
“Today’s mortgage system has the safest and soundest protections and disclosures ever created for prospective homebuyers.” Stevens added. “It is critical that all stakeholders work together to ensure that we continue to uphold the highest standards of consumer protection and an efficient marketplace. This announcement is a helpful reminder that the mortgage lending industry is there for those entering the housing market and that the American homebuyer should go out and shop for a home loan with confidence knowing that they will be backed by a national network of lenders all following the same set of consumer protection standards for their customers.”
The MBA, Community Home Lenders Association and Community Mortgage Lenders of America have all, meanwhile, asked that the CFPB’s Rate Checker tool be taken down, since it could, they claim, misinform consumers about the rates they will be paying. The latest toolkit has been released well ahead of the August deadline for use of the Loan Estimate and Closing Disclosure forms to ensure that everyone in the mortgage market is compliant by the end of summer.
By: Equity National April 6, 2015 Title