CFPB Launches Fourth Round of Mortgage Disclosure Form Testing
September 12, 2011
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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