CFPB proffers 5/1 adjustable-rate mortgage form prototypes
The Consumer Financial Protection Bureau is asking the mortgage finance industry to comment on a second set of prototype mortgage disclosure forms. The forms are part of the CFPB's plan to design and reveal sample mortgages, with the aim of rolling the forms into the marketplace to simplify home loan documents for homebuyers. To date, the CFPB has received 13,000 comments from consumers and industry representatives who took the opportunity to review the first two mortgage forms, concerning the origination of a 30-year adjustable rate mortgage, featured here and here. On Monday, the CFPB rolled out two additional prototypes, this time concerning adjustable-rate mortgages (here and here) for public viewing after making minor tweaks to the pages. In a statement, the CFPB said in the first set, the back page is the same on both versions, while the front 'shopping sheet' is different. In the second set revealed today, the first page is the same on both forms, while the back page containing information on closing costs is now the central focus. All of the prototype forms combine the federal Truth in Lending Act mortgage disclosure form with the Real Estate Settlement Procedures Act to remove redundant information and to provide customers with information that is more clear and concise. Write to: Kerri Panchuk.