The Consumer Financial Protection Bureau (CFPB) has launched the fourth round of drafts for public comment in their process to reform the Good Faith Estimate and Truth in Lending mortgage disclosures.
In the latest round, the CFPB is asking reviewers to consider how well the form presents two different loan options. The two examples presented use the same version of the mortgage disclosure form, and allows review to see how easy it is to compare competing loan options. The goal of this round of testing is to determine if the current form of the disclosure actually helps consumers understand the features presented from two different loan products.
Reviews are asked to consider if the forms provide sufficient information to make a decision between the two options, or what questions remain after considering the information on the two forms.
This round of the draft disclosure also includes a new disclosure signature page that apprears to strive to merge and simplily some other required disclosures and proivde additional information about the terms of the loan, including the late payment fee, servicing transfer and loan assumability. It also includes information about the right to receive a copy of the appraisal, refinancing the loan and the tax deductibility of the mortgage interest.
An overview of the mortgage disclosure reform process and details about the current round of testing can be found on the "Know Before You Owe" page on the CFPB website.
The CFPB notes they are accepting comments on this round throughout the week.