Items Tagged with 'Good faith estimate'

ARTICLES

  • Here's how to ensure TRID-compliant property tax estimates

    It's time to align with CFPB best practices in a post-TRID world
    Post-TRID, we're in a completely different world when it comes to providing timely and – more importantly – accurate information to borrowers. While the mortgage industry may have been able to proceed for decades without a unified standard for property tax disclosures, that’s just not sufficient any longer.
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  • Mortgage Disclosure Reform, Take 3

    The Consumer Financial Protection Bureau (CFPB) has released the third of an expected five rounds of draft mortgage disclosure reform proposals for public comment.   After announcing their review of the second round of draft forms, round three of the effort to combine the Good Faith Estimate and Truth in Lending mortgage disclosures focuses on the design of the forms, especially as it relates to how the fees are presented.  The issue of discussing tolerances is not presented in this round with the CFPB stating that later rounds will focus on consumer understanding of the tolerances related to fees
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  • CFPB Prepares for Round 3 of Disclosure Reform

    The Consumer Financial Protection Bureau is preparing to launch the third round of public comment on the reform of mortgage disclosures designed to combine the Good Faith Estimate and Truth in Lending into a single disclosure. Heading into the third wave, the CFPB announced the key points gleaned from the second round of comments. The first item to be addressed is to clarify "Cautions" to better communicate items that consumers should be careful of.  Many comments found the use of a simple Yes or No was confusing.  Second the presentation of fees continued to be a point of debate
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  • Next Step in Mortgage Disclosure Reform

    As the Consumer Financial Protection Bureau (CFPB) continues to consider ways to reform mortgage disclosures the Truth in Lending and Good Faith Estimate forms, they are preparing to launch the second phase of public comment regarding proposed changes.   The individual forms are considered to be too long and complicated, and contain overlapping information.  The goal in combining them is to devise a single disclosure that clearly explains the terms and costs of a loan to a prospective borrower. To help with the redesign process, the CFPB launched a public comment process to encourage both consumers and mortgage industry
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  • CFPB Invites Feedback on Proposed New Disclosure Forms

    The Consumer Financial Protection Bureau (CFPB) released their first draft of the new combined Truth in Lending and Good Faith Estimate mortgage disclosure forms and invited consumers and industry participants to provide feedback to the bureau.   With a goal of providing a single disclosure that is more effective in providing the information necessary for a consumer to review the terms of a proposed loan, the CFPB has presented two different options to accomplish that goal.                              OPTION A                                                              OPTION B        The links to the above documents connect to the industry participants feedback section.  There is
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  • CFPB Launches "Know Before You Owe" Program

    The Consumer Financial Protection Bureau (CFPB) launched a plan to combine the Truth in Lending form with the Good Faith Estimate in an effort to create a single mortgage disclosure that is simpler and easier to understand.  Under the plan, called the "Know Before You Owe" project, consumers, lenders and brokers are encouraged to sign up to help provide feedback about the changes.   Stating a goal to make the process as open and transparent as possible, the CFPB announced that as part of the plan, they will make the new draft disclosures available online during the process and
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  • Increased transparency with the new GFE comes with increased cost

    When trying to explain a lack of investor understanding, one of the more popular bloggers in the financial space uses the same headline for every entry: “They just don’t get [fill-in name of the stock].” Critics say the same confusion sometimes exists in the mortgage industry – particularly when it comes to good faith estimates (GFEs). A year ago, when the new RESPA rules went into effect, originators and lenders warned that it would be unworkable and would create a logistical and legal nightmare for lenders. But that didn’t happen.
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