A winning idea from the Consumer Financial Protection Bureau may reduce mortgage costs and help you understand what you’re getting into. The CFPB plans to propose rules to simply mortgage fees.  You can take a look at ConsumerMojo.com’s Mortgage Fees video, or read the PDF, and learn  about the complicated and expensive business of mortgage fees.

One proposal would require banks to reduce interest rates if you pay an upfront fee called “points.”  Another would require banks to offer you a mortgage proposal that doesn’t include points so that you can comparison shop. Another would  limit banks from charging loan origination fees that vary with the size of the loan.

The CFPB will formally propose the rules this summer and expects to enact them by January 2013. Richard Cordray CFPB director said, “Mortgages today often come with so many different types of fees and points that it can be hard to compare offers.” Seems like this is a step in the right direction.