What is the Consumer Financial Protection Bureau
What is the Consumer Financial Protection Bureau ? “Consumer Financial Protection Bureau is an independent agency of the United States government responsible for consumer protection in the financial sector. Its jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, other financial companies operating in the United States.”(Wikipedia)
Federal law has required all lenders to provide two disclosure forms to consumers when they apply for a mortgage and two additional short forms before they close on the home loan. However, it was never really simple for most people and no one really understood them. To help all parties the Dodd-Frank Act had created the Consumer Financial Protection Bureau (CFPB) to ensure that only one agency is accountable and responsible for protecting U.S. consumers. The ultimate goal is to have people understand and be aware of what they are signing. Most importantly they know their options to shop and certain services ( Owner’s Title Insurance, Credit Life Insurance, Debt Suspension Coverage, Debt Cancellation Coverage and Warranties of Home Appliances and Systems.) This means no more surprises at closing!
“On November 20, 2013 the CFPB announced the completion of their new integrated mortgage disclosure forms along with their regulations for the proper completion and timely delivery to the consumer. These regulations are known as “The Rule”.” These two forms are the “Loan Estimate and Closing Disclosure”(Ticor Title)
In addition there are new rules of when these forms must be delivered and how long the process is of reviewing these forms. All these changes have been taken affect August 1st therefore it is important that you know this before closing. “KNOW BEFORE YOU CLOSE”