Industry NewsMortgage

Regulators propose new mortgage disclosure forms

Goal is 'restoring trust in the mortgage market'
Published on Jul 10, 2012 | Updated on Apr 23, 2013

After a year and a half of research and review, the Consumer Financial Protection Bureau released simplified mortgage disclosure forms Monday that it hopes will make it easier for borrowers to understand the terms and costs of their loans and therefore be a step toward "restoring trust in the mortgage market" after the housing bubble. As part of the bureau's "Know Before You Owe" mortgage project, the bureau received tens of thousands of comments and conducted 10 rounds of testing with consumers and industry participants over the course of 18 months to come up with the proposed forms. The public has until Nov. 6, 2012 to comment on most of the proposal. The bureau will review the comments before issuing the final rule, the CFPB said.Consumers currently get two disclosure forms whenever they apply for a mortgage, and two more at the closing table. Loan applicants get one loan disclosure form aimed at satisfying Truth in Lending Act requirements (the "...

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