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A draft monthly mortgage statement designed to make it easier for homeowners to understand their loans and avoid unnecessary costs and fees is being tested with consumers and was released to the public for review Tuesday by the Consumer Financial Protection Bureau.

The Dodd-Frank Act requires that most mortgage borrowers receive periodic statements containing specified information. The statements generally must be provided by the creditor, loan assignee or servicer. Statements must include information about the principal loan amount, the current interest rate, the date of the next interest rate reset, a description of any late payment and penalty fees, information about housing counselors and a telephone number and email address where the mortgage servicer can be reached.

The statements "will help consumers stay on top of their mortgage costs and hold their mortgage servicers accountable for fixing errors that crop up," said CFPB Director Richard Cordray. "Given the widespread mortgage servicing problems we've seen over the past few years, consumers need clear disclosures they can count on."

The CFPB's draft prototype disclosure is online so all stakeholders can review and submit feedback on the form. The bureau also plans to seek comment on a version of the draft standard form when it issues a proposed rule later this year. "The development and publication of a consumer tested and publicly-vetted monthly statement will benefit consumers and facilitate compliance by mortgage servicers and creditors," the CFPB notes.

NAFCU, which remains in contact with CFPB staff and officials on how the bureau's actions will affect credit unions, is reviewing the form and will submit comments.