Consumer agency seeks more feedback on loan disclosures

Bureau: More than 13K comments on draft forms for simplified mortgage disclosure

The Consumer Financial Protection Bureau has received more than 13,000 comments on two draft proposals for a simplified mortgage disclosure form it’s in the process of developing, and will be asking for additional comments on revisions it plans to post next week.

When the new loan disclosure form is finalized, it will replace the separate forms borrowers are currently provided to satisfy requirements of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).

The TILA disclosure form in use today, developed by the Federal Reserve, focuses on loan terms. The "Good Faith Estimate," or GFE, developed by the Department of Housing and Urban Development to satisfy RESPA requirements, is designed to help borrowers also evaluate trade-offs between a loan’s interest rate and settlement service charges.