Under the rules, companies would be required to provide billing statements that explain how much of a payment is going to pay down principal, how much to interest and how much to fees. If an interest rate was set to adjust, the borrower would receive an early estimate of the new payment amount. That would allow people to consider refinancing if they don't like the new rates.
The rules also help guarantee that borrowers aren't forced to pay excessively premiums on homeowners' insurance that servicers require them to carry. In the past, servicers tacked on insurance when they believed someone's coverage had lapsed. The premiums could be several times bigger than on a typical policy.
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