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CFPB "Rate Checker" Still in the News and Under Attack

By Randy Kirsch

Mortgage and Lending with Right Trac Financial Group, Inc., NMLS# 2709 NMLS #1012303

January 25, 2015 03:07 AM

Nationally syndicated real estate news columnist Ken Harney has released an article that appeared in The Hartford (CT) Courant on Friday (01.23.2015), entitled "Consumer Agency's 'Rate Checker' Gets An Incomplete Grade". Harney is the latest in a line of mortgage industry leaders, associations and others in the real estate profession to level criticism against the Consumer cfpb Finance Protection Bureau ("CFPB") "Rate Checker" tool on its new "Owning a Home" web page. A previous post entitled "Learn About "Owning A Home"...... From CFPB" announced the launch of the web page, and a previous post entitled "MBA Attacks "Owning a Home" Web Page" outlined the critique of the web page by the Mortgage Bankers Association. The web page, "Owning a Home" can be found HERE.

As indicated in the previous posts, the interest rate tool on the CFPB web page negelects to state the points, fees and other charges that may be4 associated with a particular interest rate that the page indicates may be available in a particular area. The web page fails, as Harney points out, to state an Annual Percentage Rate as would be required of any lender providing financial information under the Truth In Lending Act. Harney interviewed a number of lenders for his article and all essentially had the same reaction - the web page is incomplete and is misleading to consumers.

The irony of the whole situation is that CFPB was established to protect consumers and the "Owning a Home" web page was launched to educate consumers about the various factors of buying a home and taking out a mortgage loan. The page however has been criticized from its launch as being a detriment rather than a help and should be taken down until brought into compliance with the CFPB's own regulations.

In a statement for Harney's column, CFPB indicated that, "the rates quoted 'assume' discount points ranging between one half a point to minus one half a point "and a 60-day rate lock," but do not include lender closing charges". How a consumer who is looking for basic information on home ownership and mortgage borrowing is going to figure that out is beyond my imagination. The web page needs to be revised and quickly so that a more complete version of the "Rate Checker" tool can be launched. Harney stated, "Bottom line: Check out the Rate Checker. But remember: There's much more to a mortgage quote than just the rate." At least he is more accurate than CFPB!

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George Souto

George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT

Your Connecticut Mortgage Expert

Randy if the CFPB thinks it is important to quote the APR when quoting interest rates then they need to do the same, no exceptions.

By the way Ken Harney is an AR member.

Jan 25, 2015 07:29 AM

Randy Kirsch

Manchester, CT

Randy Kirsch

Right Trac Financial Group, Inc., NMLS# 2709 - Manchester, CT

(NMLS# 1012303) Your Dedicated Mortgage Consultant

I did not know that Mr. Harney is an AR member George Souto - he should post some of his articles for the community. And, CFPB should not take advantage of its position and omit the APR as Ken's articlepoints out as the rates quoted oby Rate Checker can be quite misleading based on the information that CFPB provided to Ken for his article. It is far from the simple interest rate situation that they might haver consumers believe.

Thanks for sharing George.

Jan 25, 2015 08:13 AM

Joe Petrowsky

Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT

Your Mortgage Consultant for Life

Good morning Randy. Personally I could care less about the CFPB rate checker. If the only reason someone is calling is for rate, I will explain to them, there will always be someone that is willing to work for nothing.

Make it a great week!

Jan 25, 2015 07:34 PM

Conrad Allen

Re/Max Professional Associates - Webster, MA

Webster, Ma, Realtor

Hi Randy. Anything created by Elizabeth Warren has to skewed to the far left.

Jan 25, 2015 07:41 PM

It really is the principle of the thing Joe Petrowsky that CFPB does not comply with its own reguylations, but would be all over any of the private lenders that put up such a comparison without making full disclosure. Yes, you can make quotes and be undercut, but that is just not the poiunt of this situation.

Thanks for sharing, Joe.

Jan 26, 2015 07:16 AM

She was getting beat up quite a biot not that long ago Conrad Allen - but you are absolutely correct.

Thanks for sharing.

Jan 26, 2015 07:17 AM

CFPB "Rate Checker" Still in the News and Under Attack

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