CFPB Requests Information about “Junk” Fees

July 12, 2022
The CFPB recently announced an initiative to stop lenders from charging potentially excessive and exploitative ancillary “junk” fees.

The Consumer Financial Protection Bureau (CFPB) recently announced an initiative to stop lenders from charging potentially excessive and exploitative ancillary “junk” fees that may obscure the actual cost of the product being purchased. While many notable instances of these fees are tied to credit card late fees, bank deposit overdraft, and insufficient funds fees, mortgage loan closing fees are also considered.

The first step in this initiative is a public request for information about consumers’ experiences with fees they believed were included in the price but were charged separately, unexpected fees, fees that seemed too high for the service provided, and fees where the purpose of the fee was unclear. The CFPB requests input not only from consumers but also from other potential stakeholders, such as small business owners, academics, local government officials, and financial institutions.

The CFPB’s stated goal is to remove unnecessary barriers to homeownership, as well as additional charges that may price a homeowner out of a home.  While the period for sending comments has passed, the link to the announcement is here.

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In this article concerning legal and regulatory matters of interest to the mortgage industry, Sandler Law Group (SLG) provides general information and industry observations that are not motivated by or concerned with a particular past occurrence or event, or a specific existing legal problem of which SLG is aware. Nothing published herein is intended to constitute legal advice and the use of the newsletter by a reader shall not give rise to an attorney-client relationship with SLG. SLG expressly disclaims any representation of accuracy or reliability as to the content of this newsletter, as well as any obligation to maintain such content over time or to ensure it is free from errors. Brad Cope is the attorney responsible for the SLG content of this newsletter. The attorneys of SLG are not certified by the Texas Board of Legal Specialization, except as otherwise noted at

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