On May 30, 2024, the CFPB announced a public inquiry into junk fees that are increasing mortgage closing costs. The Bureau aims to get a clear picture why closing costs are increasing, who is benefiting, and how costs for borrowers and lenders could be lowered.
The inquiry was triggered by a recent analysis conducted by the CFPB where it found that closing costs borrowers pay in connection with a mortgage have risen steeply in recent years. The CFPB’s request for information seeks input from the public, including borrowers and lenders, about how mortgage closing costs may be inflated and constraining the mortgage lending market. Specifically, the CFPB asks for information about:
Which fees are subject to competition;
How fees are set and who profits from them; and
How fees are changing and how they affect consumers.
The is receiving comments until within 60 days of the request for information being published in the Federal Register.
Read the CFPB’s announcement here.
The full Request for Information can be found here.