Reuters: U.S. consumer agency proposes rules for mortgage servicers
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WASHINGTON, Aug 10 (Reuters) - The new U.S. consumer oversight agency proposed rules on Friday to make the practices of companies that service mortgages more transparent for borrowers.
The rules, which could be modified after a comment period, are designed to protect borrowers from being forced to buy expensive homeowners insurance, for example. They are also aimed at helping delinquent borrowers stay out of the foreclosure process.
The Consumer Financial Protection Bureau (CFPB) said its new rules would ensure that the mortgage servicers responsible for collecting payments from borrowers and handling issues such as foreclosures are more transparent and accessible to borrowers.
"From processing payments to evaluating struggling homeowners and helping them avoid foreclosures, the bottom line is to treat consumers fairly by preventing surprises and run-arounds," said CFPB Director Richard Cordray.
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