U.S. Consumer Agency Seeks Clearer Mortgage Closing Disclosure

As part of its ongoing “Know Before You Owe” campaign, the U.S. Consumer Financial Protection Bureau wants public feedback on a re-worked form that simplifies required disclosure of mortgage loan closing costs.
The agency’s goal is to integrate mortgage closing data into two prototypes introduced last month that relay that standard disclosures consumers would receive a few days after applying for a mortgage.
Those two prototypes displayed a different set of closing cost information in a format similar to the “HUD-1 Settlement Statement” that’s currently in use for closing.
“We’ve reworked it, based on thousands of your comments. You’ve helped us create a better one, so thanks!” the CFPB said in an e-mailed statement to those who sign up for the “Know Before You Owe” program.
The Dodd-Frank Act financial reform legislation requires the CFPB to integrate the two disclosures consumers now receive when closing on a mortgage loan: the HUD-1 Settlement Statement and final Truth-In-Lending disclosure.
“Our goal is to make this one combined form that is easier for both consumers and industry to understand and use. Keep in mind that this is the final disclosure consumers receive either shortly before or at closing,” the CFPB said. “It provides borrowers with the important information like the loan terms, closing costs, and requirements for the loan.”
Go to the CFPB’s website for more information and to provide feedback.

Leave a Reply

Your email address will not be published. Required fields are marked *