The Consumer Financial Protection Bureau launched a fourth round of testing Monday as the agency collects feedback about sample mortgage disclosure forms that will help the agency construct standard uniform lending documents for the industry. The CFPB’s “Know Before You Owe” campaign posted identical mortgage forms online this week with different loan products printed on each form for the purpose of testing how well the disclosure documents communicate differences between loan products printed on the same form. During the first three rounds of testing, the CFPB collected feedback on various disclosure forms to compare the pros and cons of each. In the new test, the CFPB will compare two identical forms with different loan information to see how clear the price differences are to consumers and lenders who read the documents. “We’re shifting gears for a simple reason: Comparing two versions of a form is useful, but in the real world, consumers should be able to use disclosures to compare different loan offers, not different forms,” CFPB said in a statement. “We want to make sure the disclosure actually helps consumers understand features of competing loan products, from the overall loan amount to estimates of taxes and insurance costs.” 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. Click here to compare the documents. Write to: Kerri Panchuk.

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