The Consumer Financial Protection Bureau (CFPB), which has been working on combining the Truth in Lending form with the Good Faith Estimate since May, is now testing the revised design with consumers and industry and is starting a new project: revamping the disclosure form that informs borrowers of final terms and costs at closing.
With the mortgage loan application form in its final stages of revision, the CFPB wants to focus on “the other end of the transaction,” saying it would like that disclosure to be “just as clear and effective as the application disclosure will be.”
This latest step comes after receiving more than 24,000 comments on its Know Before You Owe initiative, and the CFPB thanked respondents in a recent blog post for making the project “such a success.”
The CFPB included the newest prototype for the mortgage loan application, which compares a fixed-rate and an adjustable rate loan and is currently being tested in Albuquerque, NM, and welcomed further feedback.
Soon, the bureau will share a prototype closing disclosure form and ask for consumer and industry feedback. However, even though they’ve moved on to the next round, the CFPB says this isn’t the last of the application disclosure and invites respondents to “stay with them.”
The two forms will need to work together, and it will be asking for feedback on both in the future, says the CFPB, going on to request continued help as it embarks on this latest effort.
Written by Alyssa Gerace