When it comes to mortgages, banks say, "Trust us." Federal regulators are now saying, "Some new rules may be in order."
Richard Cordray, the head of the Consumer Financial Protection Bureau, says the agency will look at new requirements intended to make loan statements easier to understand.
"It's time to put the service back in mortgage servicing," he says.
Specifically, banks could be required to make monthly statements simpler for customers to decipher, and to provide borrowers with warnings before their interest rates adjust. The rules could also make it easier for homeowners to avoid foreclosure.
These are worthy changes, and remind of me of regulations imposed on banks requiring them to make credit-card statements easier to read, and to inform customers about the consequences of not paying off bills on time.