CFPB Launches Fourth Round of Mortgage Disclosure Form Testing

September 12, 2011
Housing Wire 
consumer financial protection bureau news

The Consumer Financial Protection Bureau continues to test various mortgage disclosure forms to compare the pros and cons of each. In its fourth round of testing, the agency this week will compare two identical forms with different loan information to see how clear the price differences are to consumers and lenders who read the documents. "Comparing two versions of a form is useful, but in the real world, consumers should be able to use disclosures to compare different loan offers, not different forms," according to a statement from the CFPB. "We want to make sure the disclosure actually helps consumers understand features of competing loan products, from the overall loan amount to estimates of taxes and insurance costs." The forms are designed to combine the Truth in Lending Act and Real Estate Settlement Procedures Act disclosures into a single, easy-to-read document; feedback gathered about the sample forms will enable the bureau to develop standard uniform lending documents for the industry.
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