The CFPB has created a draft of new mortgage disclosures and is actively seeking feeback, although the forms themselves have not yet become part of the formal comment process. It reached out to consumers on its blog, requesting that individuals sign up to receive a draft of the form “when it’s time to weigh in.”
The CFPB also released a copy to industry members at a recent meeting. In the meeting, CFPB head and Assistant to the President on the Consumer Financial Protection Bureau, Elizabeth Warren, revealed initial drafts of the combined mortgage application forms that would merge the RESPA and TILA disclosures. The draft forms revealed at the meeting consist of options for a two-page disclosure. In the front, the draft disclosure would prominently set forth key loan terms (interest rate, points), projected monthly payments, certain cautionary elements (existence of balloon provisions, etc.). On the back, the form would contain estimates of ancillary settlement fees and services (title insurance, origination costs, etc.), a description of escrow requirements, important dates, and adjustable rate information, among other things. A link to a CFPB web resource page explaining common terms and providing calculators or other information is also proposed as part of the form.
CFPB announced that this form will be made public this afternoon, May 18, through their website. According to Warren, CFPB will be accepting comments on this initial draft as soon as it is posted, and the website will allow members of the public to send comments electronically. The deadline for feedback on this initial draft is May 27th. Feedback and testing results will lead to further form revisions and future rounds of public feedback.
Read the CFPB’s request for consumer feedback.
Visit the CFPB mortgage disclosure website.
See the first option and the second option.
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