Published: Aug 10, 2012 6:06 PM EDT
Updated: Aug 10, 2012 6:41 PM EDT

FORT MYERS, Fla. - Unexpected costs and shoddy service from your mortgage service company could be a thing of the past under new proposed rules from a national consumer watchdog group. The recently created Consumer Financial Protection Bureau announced it's proposed rules Friday.

Mortgage service companies have been central players in the nationwide housing crisis because they're responsible for foreclosing on homes when people fail to make payments.

They've also faced criticism for charging excessive fees, foreclosing without the required paperwork and failing to help people stay in their homes by changing their loan terms.

Under the proposed 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 is set to adjust, the borrower would receive an early estimate of the new payment amount.

Sloppy bookkeeping would also come to an end. For years, homeowners have complained to Call For Action that banks have lost their paperwork.

Payments must also be credited promptly and errors corrected quickly. Companies would also be required to connect delinquent borrowers with staff who are dedicated to helping them avoid foreclosure.

The proposal is open to public comment until October. The agency will finalize the rules in January of 2013.