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June 28, 2011 – The Consumer Financial Protection Bureau is accepting input until 5 p.m. July 7 on a second round of draft forms combining mortgage-related disclosures required under the Real Estate Settlement Procedures Act and Truth in Lending Act.

The draft forms are being presented as the CFPB prepares to address a requirement of the Dodd-Frank Act. The act requires the bureau to issue final rules and disclosures by July 2012 on the combined disclosures, which have been whittled down to one page, front and back.

The CFPB says the first round involved two sample forms that differed on the front page – the "shopping sheet" showing the rate and terms – but were the same on the back. This time, it says, the front pages are the same, but the back pages – showing closing costs – are different.

The sample draft forms are from the fictitious Redbud Credit Union and Dogwood Credit Union. As with the first set of drafts, the CFPB is asking reviewers to consider the following:

• Would this form help consumers understand the closing costs associated with their loans?
• Could lenders and brokers clearly and easily explain the form to their customers?
• What would you like to see improved on the form? Is there some way to make things a little bit clearer?

"We will consider the information submitted through our website as we analyze the information we receive in the in-depth interviews to further revise the prototypes," according to a notice on the CFPB website.

NAFCU is maintaining contact with CFPB staff to discuss this initiative and other bureau efforts that will have an impact on credit unions and their members. For more on the mortgage disclosure drafts, go to www.consumerfinance.gov/knowbeforeyouowe.