In what can be a landmark proposal the fed Consumer Financial Protection Bureau has come out with new simplified forms, to ensure transparency in mortgage cost. However, the proposals are subject to more review before lenders put it to use. The proposal if accepted will go a long way to prevent consumers from being taken for a ride.
In order to gather authentic and first hand information on financial mishaps and frauds, CFPB is moving outside the capital to listen complaints from consumer groups and others about financial mishaps. Prior to this it had held meetings in cities like Minneapolis, Philadelphia, Cleveland , New York etc..
In the first page of the new simplified form, consumers can look forward to essential information like rate of interest, total outstanding, monthly payment, and closing costs. A clear idea on how rates or payments might change would also be provided. All this has been designed to help the consumer take a informed decision so that they can maintain the cost through the term. House counselors believe this will prove beneficial to consumers.
Like mortgages, the student loan market, is plagued with problems that culminate in financial mishaps. And that’s because ails persisting in this market is similar to that of the mortgage market. People are agreeing to terms that do not make a sensible deal.. To check this malady, the CFPB is formulating a new student debt calculator that can be found on the board’s website.
To ensure people don’t feel harassed or helpless while dealing with financial service companies, the bureau wants consumers to file complaints on its website. The website will also carry tips to create consumer awareness. A free copy of a consumer’s credit report will be made available at www.annualcreditreport.com. The bureau has advised people to check the report to ensure it is free of errors. A wrong credit report can make it difficult or expensive to get a loan.
The CFPB will also begin to supervise credit reporting companies. This is to ensure there is no foul play whatsoever. This would also give a federal agency an overview of the activity inside the companies.
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