The Consumer Financial Protection Bureau (CFPB) has launched the second round of draft redesigned disclosures intended to replace the Good Faith Estimate and Truth in Lending Disclosures.
The latest versions are introduced on the "Know Before You Owe Were Back" page. After receiving more than 13,000 comments in the first round of feedback, the Bureau created two new draft forms and are seeking comments from both consumers and industry participants about how well the two draft versions accomplish the goal of providing clear, easy to understand information about mortgage terms and costs.
In the second round, the CFPB is focusing on how the closing costs are presented in the two forms. Both versions have an identical first page, but the second page offers two different ways to present the closing costs to consumers.
As viewers consider the two versions, they are encouraged to focus on three specific questions:
Would this form help consumers understand the closing costs associated with their loan?
Could lenders and brokers clearly and easily explain the form to their customers?
What would you like to see improved on the form? Is there some way to make things a little bit clearer?
Similar to the first round, the CFPB has provided separate links for Consumers and Industry Participants to provide their feedback. Respondents can select their option on the Know Before You Owe landing page.
Comments on the two new forms will be accepted until July 5, 2011 at 7:00PM Eastern Time.