Banks may soon get the opportunity to test drive new mortgage disclosure policies before they are enacted, according to a plan outlined by the Consumer Financial Protection Bureau this week.
Though this idea is not finalized, the proposed plan—called Project Catalyst—would allow banks to make recommendations on how best to communicate disclosures to borrowers. The CFPB is expected to announce these new rules next month.
Project Catalyst is part of a broader initiative launched in 2011 to outline mortgage disclosures that are required under Dodd-Frank.
Proponents of the plan applaud the CFPB’s efforts to create trial programs that will benefit both financial institutions and consumers.
To read the CFPB’s full proposal, click here.