A federal regulator will consider making adjustments to lending regulation that could change the way lenders interact with borrowers, giving them more safety and soundness when qualifying for home loans.
The Consumer Financial Protection Bureau recently announced that it could implement new initiatives that could shift the way mortgage billing statements are issued, make it mandatory for a lenders to inform borrowers of interest changes and alter force-placed insurance.
The CFPB, which was established under the Dodd-Frank Act, only recently gained the power to make such changes, as the agency didn't have a director until one was directly appointed by President Barack Obama.
"For too long, mortgage servicers have not been held accountable to their customers, and the result has been profoundly punishing to homeowners in distress," said CFPB director Richard Cordray. "It's time to put the 'service' back in mortgage servicing."
Official proposals for these regulatory changes are set to come out later this year, and could go into effect as early as the beginning of 2013.
Additionally, the CFPB will also address credit regulations that are currently in place for a number of lenders, as well as a more streamlined process to correct billing of foreclosure errors.