Now in its third week of business, the Consumer Financial Protection Bureau has released a new round of revised mortgage disclosure forms, which are now open for comments from lenders and consumers. The newest forms are the third round of drafts in an effort to combine the Truth in Lending and Good Faith Estimate forms into a single document. The CFPB has said it will release five rounds of drafted forms.
In the current drafts, the fee detail does not include language about tolerances, the CFPB explained on its website, which will allow the bureau to focus on design in the current round. In later rounds, the consumer understanding of tolerances will be addressed, it noted. Further, it said it is currently testing application-triggered disclosures, and expects to test closing stage disclosures, including the settlement statement, this fall.
The first round of revamped mortgage disclosures was released in June, and the second round came July 27. While the bureau has touted the feedback of more than 18,000 consumers and industry professionals on the disclosures, the National Reverse Mortgage Lenders Association, among other groups, has urged more attention to the disclosure rewriting process. In earlier in the process, NRMLA President and CEO Peter Bell told RMD that the association is in support of a reverse mortgage-specific disclosure. Others, including the Mortgage Bankers Association, have expressed concern over the process, including the time period allotted for comments.
The CFPB is accepting comments through Monday, August 8 at 7 pm Eastern time.
View the disclosure drafts and offer your feedback.
Written by Elizabeth Ecker
