Time To Choose Between Azalea and Camelia:
A CFPB Update
August 2, 2011
Yes, the Consumer Financial Protection Bureau (CFPB) is back with two disclosure forms for your review and input. Please go to www.consumerfinance.gov/knowbeforeyouowe and review the latest options for the the same loan product.
In the past two months there have been four different versions posted for our review and input on how to improve the application disclosures. So far, there have been more than 18,000 comments. CFPB has the goal to create a single, simpler mortgage disclosure form that combines both the Good Faith Estimate and the initial Truth in Lending, but also to stay within the evolving requirements of the Dodd-Frank Act. This is a tough undertaking to make something that is understandable for consumers, yet workable for lenders and lawmakers. Our input as experienced mortgage professionals has helped to this point, but is needed once again.
On Monday, CFPB released two versions of the draft disclosures with improvements made by both consumers and professionals. Visit the CFPB website and review the forms in detail and share your preference as well as what you like, and any suggested improvements. CFPB is still in the development phase and focus of this round is the design of the form. There have been modifications made to specifically test design while other elements have been omitted for later testing, like language on fee tolerances. Although already making great headway on development, CFPB is still testing application disclosures. The plan is to test closing disclosures later this fall, so stay tuned for more input on our future.
Again, please visit www.consumerfinance.gov/knowbeforeyouowe and share your knowledge!