Banks to CFPB: Tear
Down This Rate Calculator
Banking trade groups are concerned that the Consumer Financial Protection Bureau's mortgage rate calculator provides misleading information to consumers and have requested that the agency take it down. The CFPB says the rate checker is intended to provide unbiased information on average mortgage rates by state, not tell consumers which lender to use. However, these groups contend that the calculator provides incomplete information about local mortgage rates because it lacks details on points, fees, mortgage insurance, and other important elements of home loans. Their concerns about the rate checker were re-ignited when U.S. Rep. Stephen Fincher (R-Tenn.) questioned CFPB Director Richard Cordray on the reasons for releasing the calculator ahead of rules to help the market. At the March 3 hearing of the House Financial Services' oversight subcommittee, Cordray said the agency was considering suggestions made by outside parties, such as adding an annual percentage rate estimator. Meanwhile, a CFPB spokesperson said the rate checker will be updated as part of the agency's upgrade to the "Owning a Home" toolkit later this year.
From "Banks to CFPB: Tear Down This Rate Calculator"
American Banker (03/17/15) Witkowski, Rachel
Banking trade groups are concerned that the Consumer Financial Protection Bureau's mortgage rate calculator provides misleading information to consumers and have requested that the agency take it down. The CFPB says the rate checker is intended to provide unbiased information on average mortgage rates by state, not tell consumers which lender to use. However, these groups contend that the calculator provides incomplete information about local mortgage rates because it lacks details on points, fees, mortgage insurance, and other important elements of home loans. Their concerns about the rate checker were re-ignited when U.S. Rep. Stephen Fincher (R-Tenn.) questioned CFPB Director Richard Cordray on the reasons for releasing the calculator ahead of rules to help the market. At the March 3 hearing of the House Financial Services' oversight subcommittee, Cordray said the agency was considering suggestions made by outside parties, such as adding an annual percentage rate estimator. Meanwhile, a CFPB spokesperson said the rate checker will be updated as part of the agency's upgrade to the "Owning a Home" toolkit later this year.
From "Banks to CFPB: Tear Down This Rate Calculator"
American Banker (03/17/15) Witkowski, Rachel
No comments:
Post a Comment