The Know Before You Owe project is up and running again for its fourth round of feedback on a simplified mortgage disclosure. This time the CFPB is asking consumers and those in the industry to compare two types of loan products and make a choice.
“We’re shifting gears for a simple reason: Comparing two versions of a form is useful, but in the real world, consumers should be able to use disclosures to compare different loan offers, not different forms,” Patricia McCoy, CFPB’s assistant director for mortgage and home equity markets, wrote on the CFPB’s blog . “We want to make sure the disclosure actually helps consumers understand features of competing loan products, from the overall loan amount to estimates of taxes and insurance costs.”
As required under the Dodd-Frank Act, the CFPB is charged with combining those documents required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) into one condensed disclosure form. This combined form is intended to reduce mortgage lender regulatory burden and make mortgage disclosures less confusing to consumers. A final version of the new mortgage form is required to be released by July 2012.
Make your choice by September 19, 2011.