New federal rules for home mortgages
Have a mortgage? Then you'll want to know about new rules now in place from the Consumer Financial Protection Bureau.
The CFPB's Gail Hillebrand says the rules are designed to reduce runarounds and costly surprises.
"You'll now get a monthly statement, unless you have a coupon book, and that will show you how much you still owe, what you payment is, and make sure your last payment is credited," Hillebrand told me.
Your mortgage servicer will also have to credit your payments on the day they get them.
"And that was not required before," she said. "And this helps you because you won't be paying interest for days after your payment already got there."
If you have an Adjustable Rate Mortgage, the loan servicer must now give you early notice if the interest rate is about to change. That will give you more time to shop for a new mortgage or get help if you have trouble with the new payment.
The new rules also require the loan services to contact you by the time you are 36 days late on the mortgage to find out what's going on. And they cannot start foreclosure while they're working with a homeowner who's submitted an application for help.
More Info: Safer Mortgages with Fewer Surprises