Director Cordray in Phoenix to announce the implementation of new mortgage rules
STATE CAPITOL, PHOENIX – Rep. Debbie McCune Davis, D-Phoenix (District 30), a longtime consumer advocate, today commends Consumer Financial Protection Bureau Director Richard Cordray for the work his agency is doing to prevent another mortgage crisis. Cordray came to Phoenix to announce the implementation of new mortgage rules designed to safeguard consumers against bad mortgage deals.
“By making this announcement in Phoenix, Director Cordray showed that he recognizes that Arizona is still struggling to recover from the mortgage crisis,” McCune Davis said. “Our communities are resilient and our economy is getting back on track, but many homeowners in our state still owe more than their homes are worth. That is a fact that we cannot afford to forget. I would like to thank Director Cordray for acknowledging the situation in Arizona and for the leadership his agency has shown in the consumer protection arena.”
The CFPB is a federal agency that protects consumers from predatory practices involving consumer credit cards, mortgages, bank accounts and services, private student loans, consumer loans, credit reporting, debt collection and money transfers. The CFPB developed the new mortgage rules in response to calls for reform following the mortgage crisis. The new rules will:
· Require lenders to make a reasonable, good-faith determination that the consumer can actually afford the mortgage before making a loan
· Protect consumers from surprises by those responsible for collecting their payments
· Force servicers to be more transparent in their process, including providing advance notice and pricing information before charging consumers
· Restrict “dual tracking” by barring servicers from starting foreclosure proceedings until the borrower has been delinquent for at least 120 days
· Prevent servicers from foreclosing on a property once a loss mitigation agreement has been reached, unless the borrower fails to perform under that agreement
Additionally, these new rules are now subject to federal supervision and enforcement across the entire marketplace. For more information on the new rules, go to http://www.consumerfinance.gov/mortgage-rules-at-a-glance/.
McCune Davis urges anyone experiencing problems with loan services to inform the CFPB immediately by filing a complaint. Consumers can submit complaints by:
· Going online at www.consumerfinance.gov/Complaint
· Calling the toll-free phone number at 1-855-411-CFPB (2372) or TTY/TDD phone number at 1-855-729-CFPB (2372)
· Faxing the CFPB at 1-855-237-2392
· Mailing a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa 52244
“The CFPB is empowering people to become their own advocates. By establishing these new mortgage rules and by creating a process people can utilize when they believe they are being victimized by predatory practices, the CFPB is providing consumers with the protection they need and deserve,” McCune Davis said.