Mortgage bankers should have more participation in the testing of trial disclosures currently being piloted by the Consumer Financial Protection Bureau, says the American Bankers Association in a comment letter to the agency.
Currently, disclosures are being tested on a case-by-case basis with limited-time exemptions for the companies conducting the trials. The CFPB then plans to use feedback and information gathered during the testing process to inform the final versions of the disclosures.
Yet ABA, its American Banker Insurance Association and the Consumer Bankers Association say companies should have more participation than is currently being offered.
“Companies and trade associations should be allowed to jointly develop test proposals, and be permitted to use approved trial disclosures for at least a one-year period, and for the period … after the test during which the bureau is evaluating the results,” the groups said.
Further, ABA notes, the CFPB’s proposal offers few incentives for financial services companies to participate, therefore limiting feedback from market participants.
Written by Elizabeth Ecker