CFPB Continues with Mortgage Form Revisions
September 28, 2011
September 29, 2011
The Consumer Financial Protection Bureau (CFPB) has made a slight change in round four of its mortgage disclosure form revision project, asking commenters to “compare two different types of loan products using the same version” of the mortgage form.
In recent months, the agency has released several drafts of a sample mortgage form that combines certain consumer disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) into one document. In previous drafts of the form, the CFPB asked financial institutions and consumers to comment on two slightly different versions of the combined form.
The mortgage disclosure revisions, known as the “Know Before You Owe” project, are meant to make the disclosures concerning the costs and risks of mortgage loans clearer and to help consumers comparison-shop for the best mortgage loan offer.
The combined form is required under the Dodd-Frank Act, and the CFPB is required to publish rules and model disclosures for the new mortgage form by July 2012.
The CFPB emphasized that this latest release is not the final version of the mortgage disclosure form.
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