CFPB Opens Public Probe On Closing Fees

On May 30, the CFPB announced that it was probing mortgage closing costs as part of its continued focus on so-called junk fees. The Bureau's request for information seeks input from the public on "the impact closing costs have on borrowers and the mortgage market, including the degree to which they add overall costs or otherwise cause borrower harm, and any impact such fees may have on the ability to purchase a home, anticipate and afford monthly payments, or refinance an existing mortgage."

The Bureau has noted that closing costs have recently risen sharply, increased by over 36% from 2021 to 2023. According to the Bureau, these costs, along with the rise of home prices and interest rates, have contributed to a lack of access to credit and decreased home affordability.