CFPB Releases Expectations for Mortgage Servicers and Adjustments to the Card Act
Last Friday, the CFPB issued a bulletin that outlined expectations for mortgage servicers that transfer loans; it details how mortgage servicers should heed new rules protecting consumers applying for loss mitigation help or trial modifications. The CFPB has also released its annual CARD Act, HOEPA, and QM adjustments.
The CARD Act, passed five years ago in May, prohibits certain unfair and abusive practices and increases the clarity and transparency of rates and fees associated with credit cards by limiting fees and making sure the consumer had a better understanding of the actual cost of the credit card. It has saved consumers approximately $12.6 billion dollars per year. New adjustments, effective January 1, 2015, require “the CFPB to calculate annual adjustments of (1) the minimum interest charge threshold that triggers disclosure of the minimum interest charge in credit card applications, solicitations and account opening disclosures, and (2) the fee thresholds for the penalty fees safe harbor”. (Chrisman, 2014).
Chrisman, R. (2014, August 20). CFPB Issues Servicing Rules, Annual CARD, HOEPA, and QM Adjustments; Upcoming Events. Retrieved from http://www.mortgagenewsdaily.com/channels/pipelinepress/08202014-servicing-transfer-rules.aspx
Thiess, R. (2014, May 20). CARD Act and the CFPB Are Protecting Consumers From Credit Card Deception – US News. Retrieved from http://www.usnews.com/opinion/economic-intelligence/2014/05/20/card-act-and-the-cfpb-are-protecting-consumers-from-credit-card-deception