CFPB looks to spur automated mortgage refinancing, forbearance

Sep. 23, 2022

The Consumer Financial Protection Bureau requested feedback on ways to spur new mortgage products that streamline and automate loan refinancing.

Details: The request seeks information on:

  • Targeted and streamlined refinance programs that lower monthly payments and interest rates for homeowners who are unlikely or unable to refinance.

  • Innovative refinancing products that automatically reduce a loan’s interest rate in certain circumstances.

  • Mortgage products with automatic forbearance for borrowers affected by natural disasters or other events.

Rising Rates: The CFPB acknowledged that refinancing volume has dropped nearly 70% from last year amid rising interest rates, so its effort is designed to help homebuyers benefit from the next interest rate drop. The agency earlier this week released a study on the slowdown in loan refinancing.

Deadline: Comments are due 60 days after the request for information is published in the Federal Register. ICBA will submit comments on the notice.