CFPB to enforce transparency for non-traditional loans

Mortgage lenders who offer non-traditional loans will have their policies and procedures evaluated by the Consumer Financial Protection Bureau to make sure they aren’t “potentially unfair, deceptive, or abusive” to borrowers.

The CFPB released its guidelines for lenders — what it will look at to be sure that consumers are given accurate and complete information about the loans they apply for.

For example, CFPB will make sure that a lender’s underwriting and appraisal departments are independent of the sales group. That its advertising isn’t deceptive. That the costs of the loan are explained clearly and fully.

Lenders will still be free to offer their non-traditional loans, but the CFPB will make sure that the information they provide is accurate and complete, allowing consumers to make informed decisions. Enforced transparency, as it were.

Click here for the guidelines themselves (PDF, somewhat legalese).

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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