New mortgage rules are being proposed.
- Monthly mortgage statements
Servicers would be required to provide clear billing statements including information on the loan, amount due, and application of past payments. - Warnings before interest rate adjustments
Servicers would be required to provide consumers with a new notice 6 to 7 months before the first rate adjustment, as well as earlier and improved notices before rate adjustments causing an increase in a consumer’s mortgage payments. - Force-placed insurance
Servicers can only charge borrowers for buying insurance on the property when they have a reasonable basis to believe that the borrowers have let their own insurance lapse and have given borrowers two notices estimating the cost of the “force-placed insurance.” - Early outreach for delinquent borrowers
Getting a delinquent borrower back on track requires early intervention and information about options available. - Prompt crediting of payments
Payments must be applied as of the day they are received, and the handling of partial payments is clarified. - Accurate information management
Servicers must have reasonable policies to ensure that when borrowers provide documents and information the servicers can find and use them. - Error resolution and information requests
Mistakes happen, but they need to get fixed. Servicers must address borrower concerns about possible errors within certain timeframes and provide the information they request. - Direct and ongoing access to servicer personnel
Delinquent borrowers will be able to contact the right people at their servicer to get information and take steps to avoid foreclosure. - Evaluation for alternatives to foreclosure
Servicers would be required to appropriately review borrower applications for loan modifications or other options to avoid foreclosure.
Read more about it by visiting the following link.
http://www.consumerfinance.gov/blog/putting-the-serviceback-in-mortgage-servicing/
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