The
Consumer Financial Protection Bureau has proposed new rules on mortgage points and fees imposed by lenders. According to
Bloomberg, the rules are set to take effect this summer and are intended to simplify the way lenders market mortgages. The new requirements obligate lenders to provide a rate reduction for each point, or percentage of a loan that the borrower pays up front. Lenders offering such incentives would be required to also offer a no point loan option to borrowers as an alternative. The new rules would eliminate point based origination fees, while still allowing origination fees charged at a flat rate. According to
Richard Corday, the bureaus director, the changes are being made in an effort to "...bring greater transparency to the market so
consumers can clearly see their options and choose the loan that
is right for them.”
Do you think these rules will help borrowers choose better loans?
