CFPB Tests Mortgage Closing Disclosures, Hones in On New Final Forms

After a months-long process of reworking mortgage disclosure forms to be used by mortgage lenders in the U.S., the CFPB is getting closer to a final draft. The bureau today announced it is testing prototypes in Philadelphia in the interest of gauging response from consumers and lenders alike, and working toward the final product.

The CFPB is asking people to look specifically at how new closing disclosure prototypes work with the current application disclosure prototype, rather than a side-by-side comparison, as the bureau has done in past rounds of testing and feedback. This marks the third round of testing for the new disclosure forms.

Among findings so far that the CFPB has made during testing, the agency said it has kept line numbers on the forms, following industry feedback that line numbers help software handle HUD-1 statements.

The agency asks people to review the forms with an eye toward whether the loan terms are easy to find, whether changes to loan terms are transparent, if there is contact information in case of additional questions, whether information is adequate and disclosures are easy to explain to consumers.

Next month marks the final round of testing, after which the CFPB will release final disclosure forms.

View the current round of prototype testing forms.

Written by Elizabeth Ecker

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