CFPB's Latest on Closing Disclosures
Written by Steve Van Beek
Yesterday, the CFPB blogged on its latest efforts to combine the RESPA and TILA closing documents. Â The CFPB is soliciting additional feedback from consumers and those in the mortgage industry on their latest set of two disclosure options. Â
From the blog post:
"WeâÂÂre giving a close-up to closing costs this month by trying to figure out which of two different designs communicates both the closing costs and transaction details clearly. One is similar to the existing HUD-1 settlement statement that consumers now receive when they close a mortgage loan. The other is based on our prototype for the disclosure you get when you first apply.
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Now we also want to keep working hard to make things clearer for consumers, so we are testing an entirely new design for disclosing closing cost details. WeâÂÂre curious to see if something different may work even better. This new design provides the same information as the other prototype, but it uses a format for the closing costs that is based on our application disclosure prototype. It has sections that correspond to the application disclosure and a little more plain language. WeâÂÂre wondering if this design will make the disclosure even clearer and easier for consumers. Also, what improvements could we make to both designs?"
Similar to past "Know Before You Owe" stages, the CFPB has both forms available for review and comment. Â You can provide your feedback by going to CFPB's website and switching to the "Industry Tool." Â Â
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The two prototypes for this round are available below:
It looks like this round of testing will be open through Wednesday, December 21st - so provide your comments now. Â