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If you have followed any of my past blog posts, you may have noticed I have discussed the Consumer Financial Protection Bureau’s (CFPB) updates to the “Know Before You Owe” mortgage documentation program. I am happy to report that there is a new update to the this program. As you may have probably heard, the CFPB has been working on the initial and closing mortgage documents throughout the past year, and they have reached Round 3 for the mortgage loan closing documents.
The CFPB recently asked the public to share their thoughts, suggestions, or opinions on a new set of closing documents in comparison to the initial disclosure. These new disclosures are designed to “use a format for closing costs that’s similar to the format on the initial disclosure to enable the two forms to work well together.”
The new sample mortgage closing forms are listed as Butternut Bank Disclosure and Hemlock Bank Disclosure. The CFPB, with these new disclosures, is specifically trying to find answers to the following questions:
- Can you easily find key loan terms?
- Are you able to identify changes to the loan terms or costs?
- Do you know who to contact to discuss your loan or changes to your loan?
- Do you have the information you would need to feel comfortable closing on the loan?
- Are the disclosures easy for lenders and settlement agents to use and explain to consumers?
Again, if you any have any suggestions, ideas, or thoughts on these forms, please take the time to provide your feedback to the CFPB.
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