The Consumer Financial Protection Bureau will soon launch a prototype program that will give borrowers more detailed information on their mortgages.
Once the prototype is released, the CFPB will seek feedback from industry professionals on how well it works and what necessary changes should be made.
The program will include the reforms required under the Dodd-Frank Act, which include extensive information on a loan's creditor and servicer in one statement.
"This draft statement shows consumers the breakdown of their mortgage payments - what money goes to the loan principal, interest and fees," said CFPB director Richard Cordray. "This information will help consumers stay on top of their mortgage costs and hold their mortgage servicers accountable for fixing errors that crop up."
Meanwhile, the statement will also include mortgage records and information on the principal loan amount, interest rates and any penalties or fees that may have been accumulated. In addition, if a borrower is struggling to stay current on their monthly payments, the statement will also include contacts for housing counselors and information on how to get in touch with the loan's servicer.