The CFPB released a blog post Friday outlining their belief that home closing costs include some “junk fees,” under the bureau’s definition, and are too much of a burden for mortgage borrowers who are already taking on a huge financial undertaking.
The CFPB cites the “median amount paid by borrowers was nearly $6,000” in 2022 and that the lack of competition within the market is driving up costs. This follows President Joe Biden’s affordable housing agenda detailed in his State of the Union address last week.
“President Biden laid out his affordable housing priorities in his address to the nation, one that credit unions welcome,” said America’s Credit Unions Chief Advocacy Officer Carrie Hunt. “The cooperative structure allows credit unions to fit the needs of the communities they service and offer a hand up when times are tough. However, America’s Credit Unions is paying close attention to the CFPB labeling house closing costs as ‘junk fees,’ and will weigh in on this characterization. Uncertainty in mortgage lending is extremely disruptive and can have tremendous harm on the availability of credit.”
America’s Credit Unions will continue to set the record straight on legitimate, value-based fees within financial services and advocate for policies that allow credit unions to meet their 140 million members’ needs.
