The Consumer Financial Protection Bureau (“CFPB”) is seeking comments from the public, particularly consumers and lenders, to assess the reasons for increases in mortgage closing costs. Alleged junk fees are cited as part of the cause of increased closing costs, which surged by 36% from 2021 to 2023. The CFPB states that many of those costs come from third party charges, such as for title insurance and credit reports. The CFPB invites information from those affected about which fees are driven by competition, who profits from third party costs borne by consumers, and which costs have increased the most. 

This inquiry follows the CFPB’s Spring 2024 Supervisory Highlights that discussed the CFPB’s efforts to erode junk fees in the mortgage industry. It also comes on the heels of CFPB Director Rohit Chopra’s remarks that the CFPB seeks to obtain data that would benefit the mortgage market and curtail alleged junk fees, as discussed in recent article.

Natsayi Mawere also contributed to this post.