Mortgage form comments due Dec. 21

Dec. 15, 2011 – An online tool for submitting feedback on the Consumer Financial Protection Bureau’s latest iteration of its one-sheet mortgage disclosure form was activated this week and will remain available only until Dec. 21, next Wednesday, to those seeking to provide input on the form.

The CFPB last month released two new prototypes for the single disclosure, which would replace the HUD-1 Settlement Statement and the final truth-in-lending disclosure. Both are currently provided at loan closing.

The bureau wants input on which of the two prototypes consumers and lenders believe communicates both the closing costs and transaction details clearly. One is similar to the existing HUD-1 Settlement Statement received now. The other is based on the prototype for the disclosure provided at loan application.

Both prototypes display closing costs in a format similar to the current HUD-1. They are being tested this week in Birmingham, Ala.

Responses are sought on the following:

  • Which design works best? Why?
  • Is the information presented in a consumer-friendly format?
  • Could consumers easily identify key loan terms and closing costs?
  • Does the disclosure cover all the important information you need?
  • Is the document easy for lenders and settlement agents to use?

NAFCU members can contact Dillon Shea, NAFCU’s regulatory affairs counsel, by email to dshea@nafcu.org with comments or questions about the forms.