Two and a half years ago, we began a line of work we call Know Before You Owe. The work that we did as part of that project helped lead us to the TILA-RESPA final rule we issued Wednesday. Among other things, that rule requires new mortgage disclosures: a Loan Estimate the consumer gets when […]
When we first proposed the TILA-RESPA disclosure rule, we got a lot of questions about the length of the document containing the rule. We synthesized those questions into one representative question and wrote a post to give you some answers. Now that we’re finalizing the rule, we wanted to do it again to talk about […]
Today, we’re issuing the TILA-RESPA final rule. This rule improves the way consumers receive information about mortgage loans, both when they apply and when they’re getting ready to close. Alongside the rule, we’re publishing information to help industry understand what the requirements are, such as how to fill out the disclosure forms. Helping with that […]
One part of our proposed rule to improve the disclosures consumers receive when applying for and closing on a mortgage was a change to the current definition of “finance charge.” The finance charge is intended to reflect the cost of credit for consumers as a dollar amount. It’s used to calculate the Annual Percentage Rate […]
Dear CFPB, Recently, I saw your notice of proposed rulemaking to combine and simplify existing mortgage disclosures. It’s 1,099 pages long! Why does it take so many pages to create something that’s supposed to be easy to use and understand? Sincerely, Interested in your regulations Dear Interested, This is a great question, one you’re not […]
With something as important as a mortgage, you ought to be able to get up-front, easy-to-understand information that lets you compare different offers and find the one that’s best for you. The Dodd-Frank Act requires us to combine the disclosures that present this information into newer, simpler disclosures. After more than a year of research, testing, writing, and review, we’re proposing a rule to create new, easier-to-use mortgage disclosures.
This is the post second in a series. Yesterday, we looked at the origins of the Know Before You Owe project for simplifying mortgages. Today, we look back at how the project unfolded. Very soon, we’ll issue a new proposed rule to make mortgage disclosure more effective and easier to use. Hear from us when […]
The idea behind Know Before You Owe is simple: we believe in making disclosures simpler and more effective, and doing so with the input of the people who will actually use them. Over the past year, we’ve heard from thousands of people with insights into how to use, design, and regulate mortgage disclosure. Soon, we’ll propose a new rule to combine the disclosures you get when you apply for and close on a mortgage into a single, and ideally simpler, set of forms.
The CFPB is mindful that new statutory requirements we are implementing can burden as well as benefit small financial services providers. We use many methods to reach out to small providers to find out if any of these burdens are unnecessary and, if so, how we may be able to reduce them (within the limits […]
This week we are in Austin, Texas! We’re conducting the final round of testing of the integrated disclosures you receive at two different points in the mortgage process. You receive the first when applying for a loan, and you get the other at closing. After this, we’ll be shifting to the second phase of this […]