CFPB tests third set of mortgage disclosure forms
The Consumer Financial Protection Bureau is collecting feedback on a third round of sample prototype mortgage disclosure forms. The forms are designed to combine the Truth in Lending Act mortgage disclosure form with the Real Estate Settlement Procedures Act, or RESPA, into one easy-to-read document. They are an integral part of the CFPB's mission to ensure borrowers know what type of loan product they're signing during the early stages of the origination process. The third set of forms can be found at the CFPB's website as part of its "Know Before You Owe," mortgage disclosure program. CFPB rolled out two previous sets of sample mortgage disclosure forms earlier in the summer. In round three, the agency said the forms have fee details, but exclude specific language on tolerances. This allows the CFPB to focus on the design of the overall application during this round of testing. The Consumer Financial Protection Bureau said in July it would spend the next few months accelerating its work on regulations associated with the agency's proposed mortgage disclosure forms, while also reviewing several mortgage-related rules proposed under TILA that have yet to go into effect. Before finalizing any new rules tied to the TILA-RESPA mortgage disclosure integration, Kelly Thompson Cochran, deputy assistant director for the CFPB, assured lawmakers last month that the bureau would consult with a panel of small businesses to discuss any unforeseen consequences the disclosure integration could have on the marketplace. Write to Kerri Panchuk.