Biden Targets Rising Mortgage Fees, Eyes Discount Points and Title Insurance

The Biden administration is targeting rising mortgage closing costs as the latest "junk fees," with the CFPB citing a nearly 22% jump in costs for home purchases from 2021-2022.

Closing costs were found to disproportionately impact first-time and lower-income homebuyers, with nearly 15% paying more in fees than their down payment.

The CFPB called out discount points and title insurance specifically as areas where unfair or excessive fees may lurk. However, some experts argue discount points are not "junk fees."

The CFPB intervened in a lawsuit over alleged "convenience fees" charged by a mortgage company without borrowers' consent.

If the CFPB successfully limits certain closing cost fees, some experts predict lenders may hike interest rates to make up the difference.