In an effort to spur new mortgage products that can help households, the CFPB is asking for insights on ways to improve mortgage refinancing for homeowners who would benefit from refinancing, especially for borrowers with smaller loan balances.
The agency is also seeking public input on ways to support automatic short-term and long-term loss mitigation assistance for homeowners who experience financial disruptions. The CFPB says that it will use this information as it considers steps to support household financial stability and address refinance market gaps, and that the initiative is part of a broader bureau effort to promote competition and innovation in consumer finance markets.
Specifically, the CFPB is requesting information about:
- targeted and streamlined refinance programs;
- innovative refinancing products, such as automatic refinancing; and
- automatic forbearance and long-term loss mitigation assistance.
The CFPB says that this request for information is an example of its new approach to promoting competition and new products. As announced in May, rather than providing special regulatory treatment of individual firms, the CFPB says it will seek to identify stumbling blocks for those seeking to challenge the status quo with new products or services.
Read the Request for Information Regarding Mortgage Refinances and Forbearances. The deadline for submitting comments is Nov. 28, 60 days after publication in the Federal Register.