In an effort to curb a number of transactions fees currently being issued by some mortgage lenders and other financial institutions, the Consumer Financial Protection Bureau recently announced that it plans to implement new lending regulation to further protect consumers, The New York Times reports.
Specifically, the new rule would prevent lenders from charging borrowers varying origination fees depending on the size of the home loan they take out. By implementing the regulation, experts believe it will make it easier for prospective borrowers to compare and contrast loan offers from various lenders.
"Mortgages today often come with so many different types of fees and points that it can be hard to compare offers," CFPB director Richard Cordray said, according to the newspaper. "We want to bring greater transparency to the market so consumers can clearly see their options and choose the loan that is right for them."
However, some banks feel that the large number of new rules being enacted under the Dodd-Frank Act is getting out of hand, and once this regulation goes into effect, it will open the floodgates for even more regulation the future.