CFPB Proposes Draft Mortgage Statement for Borrowers

The ""Consumer Financial Protection Bureau"":http://www.consumerfinance.gov/ (CFPB) called for public comment on a draft it recently proposed for a mortgage statement required for borrowers under the Dodd-Frank Act.

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If approved, mortgage servicers and assignees of the loan would need to distribute the statement to borrowers with

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information that includes the principal loan amount, current interest rate, any late payments and penalties, and contact information for both the servicer and a housing counselor.

A ""draft version"":http://www.consumerfinance.gov/wp-content/uploads/2012/02/20120213_cfpb_draft-periodic-mortgage-statement.pdf of the statement shows that servicers would also need to break down past payments and notify borrowers of any important news or information.

""This draft statement shows consumers the breakdown of their mortgage payments ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô what money goes to the loan principal, interest, and fees,"" CFPB director Richard Cordray said in a statement.

He billed the rule as one that would ""help consumers stay on top of their mortgage costs and hold their mortgage servicers accountable for fixing errors that crop up.

""Given the widespread mortgage servicing problems we've seen over the past few years, consumers need clear disclosures they can count on,"" he added.

The CFPB said it would propose a rule that finalizes the borrower statement later this year.