Comment on the 3rd Round of Proposed CFPB Closing Forms
Small Business Panels to Review Potential Costs of New Mortgage Disclosures
The Consumer Financial Protection Bureau (CFPB) is seeking comments on two new versions of prototype forms that will combine the Truth in Lending disclosure and the HUD-1 Settlement Statement to explain final loan terms and closing costs to consumers. This is a rare opportunity to offer feedback on forms that will have a huge effect on the industry, and we encourage you to take the time to comment today.
The Bureau is not using the side-by-side comparison tool it has used before and is instead asking the public to comment on how the proposed closing forms work with the current draft of the initial disclosure by posting comments to its blog here or by sending an email to KnowBeforeYouOwe@cfpb.gov.
Here are the questions the Bureau is asking the public to consider this round:
Can you easily find key loan terms?
Are you able to identify changes to the loan terms or costs?
Do you know who to contact to discuss your loan or changes to your loan?
Do you have the information you would need to feel comfortable closing on the loan?
Are the disclosures easy for lenders and settlement agents to use and explain to consumers?
Small Business Panels Will Review Mortgage Disclosure Forms This Spring
Earlier this week, newly installed CFPB Director Richard Cordray told a Congressional Subcommittee that small business panels will soon review the potential cost impacts new mortgage disclosure rules could have on small businesses.
The CFPB is one of three federal agencies that must comply with special rule-review procedures of the 1996 Small Business Regulatory Enforcement Fairness Act, or SBREFA. The mortgage disclosure rule to combine the Truth in Lending disclosure and the HUD-1 Settlement Statement will be the first regulation to be vetted by the small business review panels. Cordray said the Bureau expects to complete the rule by July 2012.
Cordray also told lawmakers that the CFPB's regulatory agenda for 2012 will be dominated by requirements of the Dodd-Frank law. In addition to the disclosure forms, the agency will issue new underwriting standards as part of the "qualified mortgage" rule. He said the Bureau also plans to propose regulations that will define "larger participants" in the non-bank financial sector that will face CFPB supervision. View Cordray's Full Testimony >>