Get answers to your mortgage questions | Consumer Financial Protection Bureau (2024)

FAQs

What is the most commonly reported complaint related to mortgage lending? ›

Poor communication, or a lack of responsiveness, is the most common complaint in the mortgage lending process.

Under a new rule from the Federal Housing Finance Agency (FHFA), which took effect on May 1^st, borrowers with lower credit ratings and less money for a down payment will qualify for better mortgage rates, while those with higher ratings will pay increased fees.

We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.

Consistent with applicable law, we securely share complaints with other state and federal agencies to, among other things, facilitate: supervision activities, enforcement activities, and. monitor the market for consumer financial products and services.

Ninety-eight percent of complaints sent to companies by the CFPB receive timely responses.

3-30-10 Rule For Buying A House

If you really want to keep your personal finances easy to manage don't buy a house for more than three times(3X) your income. If your household income is $120,000 then you shouldn't be buying a house for more than a $360,000 list price.

The 5 year rule for home ownership refers to the requirement that individuals must have owned and used their home as their primary residence for at least 5 consecutive years out of the last 8 years in order to qualify for certain tax benefits, such as the capital gains exclusion.

Extension of the Mortgage Debt Relief Act

The Consolidated Appropriations Act (CAA) was signed into law on December 27, 2020 as a stimulus measure to provide relief to those affected by the pandemic. The CAA extends the exclusion of cancelled qualified mortgage debt from income for tax years 2021 through 2025.

Our work includes: Rooting out unfair, deceptive, or abusive acts or practices by writing rules, supervising companies, and enforcing the law. Enforcing laws that outlaw discrimination in consumer finance. Taking consumer complaints.

Does the CFPB really help consumers? ›

The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives.

Rules and policy

The CFPB implements and enforces federal consumer financial laws to ensure that all consumers have access to markets for consumer financial products and services that are fair, transparent, and competitive.

Whether you are single, married, divorced, or widowed, is off-limits for lenders. They also cannot inquire about your family status, including whether you have children, are planning to have children, or are pregnant. "Are you part of a single-parent or two-parent household?"

Questions a mortgage lender should never ask

Sexual orientation. Disabilities. Family expansion plans (a lender can ask how many children you currently have and their ages, but it can't ask if you plan to have more or discriminate based on familial status)

For example, if a lender refuses to make a mortgage loan because of your race or ethnicity, or if a lender charges excessive fees to refinance your current mortgage loan based on your race or ethnicity, the lender is in violation of the federal Fair Housing Act.

While predatory lenders are most likely to target the less educated, the poor, racial minorities, and the elderly, victims of predatory lending are represented across all demographics.

Understand Loan Request Review Criteria

A loan officer's primary concern when reviewing a loan request is whether or not the loan will be repaid.

The Fair Housing Act makes it illegal to discriminate against someone because of race, color, religion, sex (including gender, gender identity, sexual orientation, and sexual harassment), familial status, national origin or disability at any stage of the mortgage process, including: Approvals and denials.