The Consumer Financial Protection Bureau (CFPB) published a report on its “Know Before You Owe” eClosing project which found that borrowers can benefit from electronic closings when navigating the mortgage closing process. Specifically, the results of the pilot indicate that those who closed their mortgage using an electronic platform are generally better off on measures of understanding, efficiency, and feeling empowered than borrowers who used just paper forms. “While technology alone will not address all consumer concerns in the closing process, our study showed that eClosings do offer the potential to make the process less complex,” said CFPB Director Richard Cordray. “We expect this pilot project and its findings to help inform further innovation that will be a win-win for consumers and industry alike.”
CFPB Provides Guidance About Private Mortgage Insurance Cancellation and TerminationBureau Issues Bulletin Regarding Homeowners Protection Act
The Consumer Financial Protection Bureau (CFPB) issued a bulletin providing guidance to mortgage servicers regarding the cancellation and termination of private mortgage insurance. The bulletin explains certain requirements of the Homeowners Protection Act and is intended to help servicers comply with the law. “Consumers should not be billed for unnecessary private mortgage insurance,” said CFPB Director Richard Cordray. “We will continue to supervise mortgage servicers to ensure they are treating borrowers fairly, and today’s guidance should help servicers come into compliance with the Homeowners Protection Act.”
Rural Housing Service Announces New Round of Multifamily Preservation and Revitalization Funding
The United States Department of Agriculture's (USDA) Rural Housing Service (RHS) announced the application schedule for the next round of Multifamily Preservation and Revitalization (MPR) funds. MPR is a demonstration program designed to preserve and revitalize rural rental housing projects under Section 514, Section 515, and Section 516 of the Housing Act of 1949. MPR funds may be used to restructure existing Section 515 multifamily housing loans and Sections 514/516 off-farm labor housing loans to allow the developments to continue to serve very low-, low-, or moderate-income residents. Developments selected to receive MPR funding are expected to rehabilitate and extend their commitment to affordable housing without displacing current tenants due to rent increases.