The CFPB issued a request for information Thursday regarding fees charged by mortgage providers and related settlement services. According to the bureau, it “wants to understand why closing costs are increasing, who is benefiting, and how costs for borrowers and lenders could be lowered,” noting such fees may limit the ability of lenders to offer competitive mortgages as they absorb higher costs or pass them on to borrowers.
The request 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:
- The extent to which consumers or lenders currently apply competitive pressure on third-party closing costs, and about market barriers that limit competition;
- Who benefits from required services and whether lenders have oversight or leverage over third-party costs that are passed onto consumers;
- Which costs have increased most in recent years and the reasons for such increases, including the rise in cost for credit reports and credit scores; and
- Data on the impact of closing costs on housing affordability, access to homeownership, or home equity.
Comments are due on or before Aug. 2.
