CFPB Kicks Off Phase 2: Simplifying Mortgage Closing Forms

November 8, 2011
ReverseMortgageDaily  
consumer financial protection bureau news

Now that is has addressed the initial steps of the mortgage process, the Consumer Financial Protection Bureau is moving on to the other end of the deal: the disclosure forms for loan closings. The agency on Nov. 8 released two prototypes of the Truth in Lending Disclosure and the HUD-1 Settlement Statement -- the federal documents that list final loan terms and costs -- and it is working on amalgamating them and certain other federal disclosures into one simple-to-use form. "We believe the terms and costs on these disclosures should be similar to the ones you received when you first applied for the loan," the CFPB wrote in a recent blog post. "Being able to compare these terms and costs is what it means to 'know before you owe.'" The prototypes may not look shorter or easier to understand at first glance, the CFPB acknowledges, because they contain some new disclosures mandated under the Dodd-Frank Act. The regulator is accepting comment on the forms through Wed., Nov. 16.
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