The CFPB released nationwide education about new mortgage rules late in December 2013. These rules will go into effect on 10 January 2014. In a quote by Director Richard Cordray, he states that “taking on a mortgage may be the largest financial obligation of a consumer’s lifetime. We want to make sure that potential home-buyers have the information they need to make responsible decisions that current borrowers know about their new protections.”
This information may be particularly useful to servicemembers and their families, who arguably may have been one of the hardest hit populations by the housing market crisis. In a new study released by the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation 46% of active-duty servicemembers reported they perceive to be underwater on their homeownership, meaning they owe more on their mortgage than their home is worth. New mortgage rules and protections that the CFPB is working to implement will help homeowners be more knowledgeable about taking on a mortgage loan and more importantly, all Americans will be more protected in the marketplace.
Andia Dinesen, AFC®
VP Communications and Operations, AMBA