Fintech
Fintech Nexus Newsletter (May 21, 2024): CFPB Director Exposes Credit Reporting and Credit Scores for Gouging Prices
Speaking at an event yesterday, CPFB director Rohit Chopra She said his agency is looking into “price gouging” in credit reporting.
With credit reports required for selling mortgages to Fannie and Freddie, mortgage lenders have no choice but to pay them. Some lenders have shared that credit reporting costs have increased by up to 400% since 2022.
To make matters worse, credit reports are often full of inaccuracies, and the CFPB is inundated with consumer complaints regarding this issue.
These costs lead to more expensive mortgages in a market that is already reeling from the highest interest rates in 15 years.
“We are eager to hear from funders and will explore possible regulations and guidance to improve competition, choice and affordability,” he said.
In the foreground
> The CFPB decries “price gouging” in credit reporting
By Spencer Lee
At an industry conference, Consumer Financial Protection Bureau Director Rohit Chopra said he was open to suggestions on how to increase choice and competition to benefit mortgage lenders and borrowers.
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Peter Renton is president and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and is the author and creator of the Individual fintech podcastthe first and longest running fintech interview series.