CFPB Launches Inquiry into Fees Imposed as Part of Mortgage Transactions

  • The CFPB has launched an inquiry into so-called “junk fees” charged by mortgage providers and related settlement services, to better understand why closing costs continue to rise and the impact of such fees on borrowers and the mortgage market.
  • The Request for Information Regarding Fees Imposed in Residential Mortgage Transactions seeks input from the general public and all interested stakeholders, including borrowers and lenders, by August 2, 2024. Specifically, the agency is seeking information about which fees are subject to competition, market barriers that may limit competition, how fees are set and who profits from them, and the impact of rising fees on consumers, including with regard to housing affordability, access to homeownership, and home equity.
  • The CFPB recently issued a report finding that certain mortgage servicers violated truth-in-lending and other consumer protection laws by charging homeowners hidden “junk” or other improper fees and sending deceptive notices to consumers.