Mark Schulenburg

Branch Manager • Guild Mortgage

  • Home
  • About
    • About Mark
  • Resources
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Calculator
    • Mortgage FAQ
    • Mortgage Glossary
  • Testimonials
  • Apply Now
  • Contact

Understanding the CFPB’s New Mortgage Rules and How They Might Affect You

April 19, 2016 by Mark Schulenburg

Understanding the CFPB's New Mortgage Rules and How They Might Affect YouIf you’re getting a mortgage, you’ll want to ensure you’re well versed in all of the government regulations surrounding mortgages and how they affect you. One government agency that dictates a number of the rules surrounding mortgages is the Consumer Financial Protection Bureau. The CFPB has several regulations that lenders need to follow, some of which have only recently come into effect.

So how do the CFPB’s new mortgage rules affect you? Here’s what you need to know.

Know Before You Owe: Mortgages Just Got Easier To Understand

The CFPB’s new Know Before You Owe mortgage disclosure rule has rolled four previous forms into two. You’ll now receive your Loan Estimate and Closing Disclosure documents when you are about to close on a mortgage, making it easier to understand what exactly is in your mortgage. The new law also requires lenders to give you three business days to review your Closing Disclosure and pose questions before you sign the closing paperwork.

These forms are also standardized across the country – they are now shorter and written in simpler language, and all lenders are required to use the same forms. The forms must clearly state what your closing costs will be and what your monthly payment will be throughout the term of the loan.

More Power For Borrowers Who Are Behind On Payments

For decades, the mortgage system worked like this: If you run into trouble with your mortgage and find yourself behind on payments, your lender can foreclose on your home. But now, new rules state that lenders must take certain steps before they start the foreclosure process. Lenders must reach out to borrowers who are struggling and provide them with the opportunity to make a payment or work out an alternative arrangement.

The lender doesn’t have to give the borrower options that aren’t available, but if there is a non-foreclosure option on the table, the lender is now legally obligated to pursue it.

Mortgage Providers Will Need To Be More Transparent

The new rules also make the mortgage system much more transparent.

Under the new law, your lender is legally obligated to give you a mortgage statement with all of the information about your monthly payment in one place. If you run into trouble with payments, your lender is obligated to assign an employee to track your documents, answer your questions, and guide you through your options. There will be no more surprise foreclosures, no more administrative red tape, and no more debt traps.

Getting a mortgage is a complicated endeavor, and the new rules that have come into effect are designed to simplify the process. Contact a mortgage professional near you today to learn more about how mortgages work.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Legal Matters, Mortgages

Mark Schulenburg

Contact Mark


Branch Manager
Call (630) 417-7174
markschulenburg@guildmortgage.net
NMLS # 559943 Guild Mortgage
NMLS #3274

Browse Articles by Category

Get A Free Rate Quote!

Recent Articles

  • Getting A Mortgage When Self-Employed: What You Need To Know
  • On Time, Every Time: How Being Late on Monthly Payments Can Affect Your Mortgage
  • What Is A Loan Contingency: An Overview
  • What’s Ahead For Mortgage Rates This Week – January 23, 2023
Guild Mortgage NMLS #3274
Equal Housing Lender

Our Location


1815 Meyers Road Suite 120
Oakbrook Terrace, IL 60181

Copyright © 2023 · Powered by MySMARTblog