WASHINGTON (AP) -- The government's consumer lending watchdog proposed new rules Friday aimed at protecting homeowners from unexpected costs and shoddy service by companies that collect their monthly mortgage payments.
Mortgage servicing companies would be required to provide clear monthly billing statements, warn borrowers before interest rate hikes and actively help them avoid foreclosure under the proposal by the Consumer Financial Protection Bureau. The rules also require companies to credit people's payments promptly, swiftly correct errors and keep better internal records.
The proposal is open for public comment until Oct. 9. The agency will finalize the rules in January 2013.
2. The GOP must be frothing at the mouth. They fought the funding of this agency so hard Warren left.
I hope to see her elected and more action from this, one of Obama's promises kept. I noticed as soon as the Democratic congress in that narrow window before the baggers got in office to stop this, the differences in my bank statements, etc. I have never been treated with such good protection since the 1970's when the first consumer protection laws came into effect. They were devastated by decades of GOP rule and we still have a ways to go. Thanks Democrats for giving us this relief.