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The White House Press Release
Biden-Harris Administration Launches New Effort to Crack Down on Hassles that Waste Americans’ Time and Money
The Presidential Administration released an initiative to crack down on all the ways corporations add unnecessary hassles to people that in turn degrade their quality of life. Examples of this include but are not limited to excessive paperwork, long hold times, “doom loops” of customer service calls, and general aggravations that pad the profits of big business at the expense of the people.
The proposal will include:
There has not been any proposed rule from the CFPB on this, but the administration is promising to act on this in the coming months.
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Consumer Financial Protection Bureau (CFPB)
CFPB Takes Action to Stop Contract-for-Deed Investors from Setting Borrowers Up to Fail
The CFPB released an advisory opinion and research report regarding contract-to-deed home financing. Under this form of financing, the seller agrees to turn over the deed after the buyer completes a series of payments. The issue with this form of financing is that the deals often have little oversight, leaving investor groups and other sellers to set several traps for the buyer that will leave them in unlivable homes, on the hook for tax liens and expensive repairs, and at risk of losing their down payments and home. The advisory opinion states that federal home lending rules and laws should cover contracts for deeds and provide key consumer protections.
“The CFPB has found that investors are targeting people of faith with predatory mortgage products that set the borrower up to fail,” said the CFPB Director Chopra.
Contract for deeds, also known as “land contracts,” “installment land contracts,” "land sales contracts,” and “bonds for deeds,” are structured such that the borrower carries the responsibilities of homeownership which include repairs, property tax, and improvements while not actually owning the title.
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