New Rules for the Good of Consumers Says U.S. Consumer Agency
New Rules for the Good of Consumers Says U.S. Consumer Agency
It is vital that consumers should be able to find the right kind of lenders to have the perfect deal for their personal loans. The United States consumer protection agency has realized this importance and has found a way to make it easier for consumers to compare mortgage deals.
Mortgages come with different deals according to the Consumer Financial Protection Bureau; these fees have different arrangements when it comes to the amount of promo points and fees you can have to reduce your loan’s interest rate. These deals are what make it very difficult for consumers to compare the loans of the different financial agencies.
In the proposed law of the U.S. consumer agency, the mortgage lenders could still offer the promos and fees to clients; however they must show the amount of the loan without the fees and the points.
According to Richard Cordray, director of the CFPB, they want to give customers the best and so it is a must that lenders should provide their deal and give the customer the option to easily choose their own loans.
The new rules that are expected to be followed next year exempt the provision in the 2010 Dodd-Frank financial oversight law. Debtors are allowed to have the decision in taking a mortgage without the fees and points that lenders offer with it.
Regulators are currently soliciting advice on how to make sure that customers will be able to fairly choose deal payments. The mortgage business has been criticized for approving loans for individuals who cannot afford them; this had a great contribution to the economic crisis of the country in 2007 to 2009.
The privilege of presenting and offering customers loans with unjust terms are often within the loan officers and brokers. Also, the qualifications and the standards for loans are different among individuals. The CFPB however, is confident that the new rules that they are proposing to adapt is going to take care of these problems.
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Filed under: Personal Finance • personal loans
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