The Consumer Financial Protection Bureau announced the Know Before You Owe initiative, an effort to combine the Truth in Lending Act mortgage disclosures and the Real Estate Settlement Procedures Act Good Faith Estimate into a single form. The Bureau has started testing two different prototype forms. The testing precedes the Bureau’s formal rulemaking process and involves soliciting feedback from consumers, lenders, and brokers. The Bureau is required by Dodd-Frank to issue the combined disclosures and implementing regulations by July 2012 for formal notice and comment. Click here to access the mortgage disclosure prototypes.
Alert May 31, 2011