The CFPB has issued a proposed rule and two accompanying proposed forms intended to combine and simplify mortgage disclosure requirements under the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA).
The 1,097-page proposed rule, among other things, would require lenders to give consumers a new, three-page “Loan Estimate” form within three business days of applying for a loan. The form includes information on the mortgage’s key features, costs, and risks.
At least three business days before closing on the loan, consumers would be required to receive a new, five-page “Closing Disclosure” form that would provide details on all costs associated with the loan.
The CFPB has created a new website that provides a side-by-side comparison of the two new proposed mortgage forms and the old ones, an illustration of how the proposed rule relates to the forms, and a timeline of the CFPB’s “Know Before You Owe” mortgage project.
The comment deadline on certain provisions in the proposed rule is Sept. 7.
The comment deadline for the remainder of the proposed rule is Nov. 6.
Read the proposed rule.
View the proposed “Loan Estimate” form.
View the proposed “Closing Disclosure” form.
View the new website page.