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CFPB Wants Borrowers to Know Their Rights

JAN 7, 2014 5:41pm ET
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The Consumer Financial Protection Bureau is providing borrowers with sample letters they can send to servicers to fix an error or request needed information.

It is part of the bureau’s effort to ensure consumers are aware of their rights under the new servicing rules that go into effect Jan. 10 and know how to exercise those rights to prevent foreclosures.

“Under the rules, mortgage borrowers will be protected from costly surprises and runarounds by their servicers,” the CFPB says.

One letter involves a recent change in hazard insurance companies. “Can you confirm that you have received an updated homeowner’s insurance policy from XYZ Insurance Company?” the sample letter says.

Speaking at a National Association of Realtors event Tuesday, CFPB director Richard Cordray stressed that the servicing rules are not new.

“They are exactly what good community banks and credit unions have been doing for many, many years. They amount to little more than taking the time to work directly with customers to address their circumstances. In short, our rule means simply that mortgage servicers must now do their jobs,” he says.

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