The Consumer Financial Protection Bureau (CFPB) is tightening the screws on home buying. Are you ready?
On Monday, the CFPB released their proposed combined mortgage disclosures under the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA).
The new rules would establish disclosure requirements and forms for most residential first mortgages.
The new rule requires two disclosures:
Loan Estimate Disclosure – explains key features, costs and risks associated with the mortgage, provided within three business days of first applying
Closing Disclosure – explains all costs associated with the loan, provided three business days before the close of the loan
The disclosures offer clear warnings about prepayment penalties and include data points that make the estimates more reliable, the bureau said.
The new disclosure forms have already gone through 10 rounds of testing and re-tweaking and are designed to be more clear and concise.
The public has until Nov. 6 to review and provide comments on most of the CFPB’s proposal. However, comments are due for specific portions after 60 days on Sept. 7. The CFPB will review and analyze the comments before issuing final rules.
What feedback would you give on the new forms? Tell us and tell the CFPB by clicking here.