CFPB launches review of mortgage closing fees

The Consumer Financial Protection Bureau launched a public inquiry into what is driving an increase in mortgage closing costs.

Background: According to a CFPB analysis, the median total loan costs for home mortgages rose by more than 36% from 2021 to 2023.

Request for Info: The CFPB’s request for information seeks feedback from borrowers and lenders on:

• How mortgage closing costs may be inflated and constraining the mortgage lending market.

• Why closing costs such as credit reporting and title insurance are increasing and how costs for borrowers and lenders could be lowered.

Deadline: Comments on the RFI are due by Aug. 2. ICBA is reviewing the RFI and plans to comment.

‘Junk Fees’: The CFPB announced the RFI as part of its “junk fees” campaign—which has thus far targeted overdraft and credit card late fees—though the “junk fees” verbiage does not appear in the RFI itself.

ICBA View: ICBA has repeatedly rejected the Biden administration’s mischaracterizations of overdraft services and credit card fees for late payments as “junk fees,” including in a national news release ahead of President Joe Biden’s State of the Union address.