CFPB Begins Mortgage Closing Form Revisions
November 14, 2011
November 15, 2011
According to “CUNA News Now,” The Consumer Financial Protection Bureau (CFPB) is continuing it’s process of combining the federal Truth in Lending Act (TILA) disclosures and the required Real Estate Settlement Procedures Act (RESPA) HUD-1 settlement statement into a single “closing” document, entering the second phase of its “Know Before You Owe” project relating to mortgage loans.
The CFPB has released two separate forms and will ask consumers and finance-industry insiders to comment on them and pick a preferred loan form layout.
Both of the proposed forms are around five pages in length and are “aimed at simplifying the federal disclosures consumers have to tackle at the closing table. Our goal is to help make the costs and risks clear at all stages of the mortgage process—from shopping for a mortgage to signing on the dotted line,” de facto CFPB leader Raj Date said in a statement.
The CFPB said it will begin testing the mortgage closing documents this week in Des Moines, Iowa. Three more versions of the new mortgage closing forms will be revised and then released to the public between now and February, according to the CFPB.
The combined closing form is meant to accompany the CFPB’s combined TILA/RESPA document. The CFPB’s “Know Before You Owe” project, which began in May, asked for comment on several drafts of a sample combined TILA/RESPA mortgage form. The CFPB is also planning to develop new mortgage regulations once the mortgage disclosure form revision project is completed.
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