Fintech Nexus Newsletter (May 21, 2024): CFPB Director calls out credit reporting and credit scores for price gouging

Speaking at an event yesterday, CPFB Director Rohit Chopra said his agency is looking at “price gouging” in credit reporting.

With credit reports required for selling mortgages to Fannie and Freddie, mortgage lenders have no choice but to pay for them. Some lenders have shared that the costs for credit reports have increased by up to 400% since 2022.

To make matters worse credit reports are often rife with inaccuracies and the CFPB is inundated with consumer complaints regarding this problem.

These costs lead to more expensive mortgages in a market that is already reeling from the highest interest rates in more than 15 years.

“We are eager to hear from lenders and will look at possible rulemaking and guidance to improve competition, choice and affordability,” he said.

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> CFPB calls out “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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• Source: https://www.fintechnexus.com/fintech-nexus-newsletter-may-21-2024-cfpb-director-calls-out-credit-reporting-and-credit-scores-for-price-gouging/