League Will Monitor CFPB’s Information-Gathering Effort for Mortgage Closing Cost Fees

The Biden Administration’s war on what it terms “junk fees” has entered new territory - the real estate finance process.

Last week, the Consumer Financial Protection Bureau asked that consumers weigh in on how fees in the mortgage closing process affect them.

Your League has reported widely on the growing pressure credit unions are facing on the fees they charge. In recent weeks, we’ve seen new fee reporting requirements for some credit unions, a move from the CFPB to eliminate NSF fees, a proposal targeting overdraft fees charged by very large financial institutions, and days ago, CFPB’s issuance of a final rule on credit card penalty fees.

We’ve also seen a growing number of media reports attacking the various fees charged within the financial services industry, including an article last week from Consumer Reports targeting credit unions.

“It’s been something of a relentless march by the Biden Administration and regulators in targeting fees that credit unions are charging to offset their legitimate business costs,” said League Chief Advocacy Officer JT Blau. “For almost a decade, all mortgage lenders have followed TRID rules when they issue a mortgage or offer an estimate, which breaks down the estimated terms of a mortgage, including costs and fees being charged. We’ll monitor and engage with policymakers and regulators should this initiative look likely to negatively affect credit unions’ mortgage lending efforts.”