On Dec. 18, the Consumer Financial Protection Bureau (CFPB) launched a public education campaign about new protections under its mortgage rules that take effect Jan. 10, 2014. The agency is releasing educational materials ahead of the implementation date.
“Taking on a mortgage may be the largest financial obligation of a consumer’s lifetime,” said CFPB director Richard Cordray. “We want to make sure that potential homebuyers have the information they need to make responsible decisions and that current borrowers know about their new protections.”
The mortgage rules are intended to shield consumers from excessive debt by requiring lenders to evaluate whether borrowers can afford to repay the mortgage before financing them. The rules also set strong protections for distressed homeowners who may be facing foreclosure. The CFPB is working with industry, housing counselors, and consumer groups to make sure these rules are implemented smoothly. The agency's educational materials include a guide for housing counselors, mortgage tips, answers to consumer questions, consumer tools available on the CFPB website, and factsheets about the new rules.