The Consumer Financial Protection Bureau seeks industry feedback on a prototype monthly mortgage statement that aims to provide borrowers with more detailed information about their home loans.
Under the sweeping reforms of the Dodd-Frank Act, mortgage statements must contain information about the creditor, loan assignee and mortgage servicer.
In addition, the new law stipulates mortgage statements should provide borrowers with information on the principal loan amount, current interest rate, the date of interest rate resets and a description of any late payment or penalty fees. The statement should also provide borrowers with information on housing counselors, as well as contact information for the loan’s servicer.
A prototype is available online for review at the CFPB website.
“This draft statement shows consumers the breakdown of their mortgage payments — what money goes to the loan principal, interest, and fees,” CFPB Director Richard Cordray said. “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.”