The Consumer Financial Protection Bureau released its final proposal for simpler mortgage disclosures â€” a three-page summary of home-loan costs and risks â€” to a lukewarm response from industry groups and a key consumer advocate.
The proposed disclosure forms are the product of 18 months of research and consumer testing. The bureau said the forms would benefit consumers by using plain language and lenders by replacing two sets of more complex disclosures that currently must be made.
The comparison sheets are designed to clearly disclose important details of home loans to borrowers before they sign their mortgage documents, preventing nasty surprises at closing and sometimes years later.
The proposed "loan estimate" and "closing disclosure" forms, with the same categories in both, are to be given to borrowers three days after they apply for a loan and three days before it closes to give them time to evaluate the mortgage.Source: http://www.latimes.com/business/la-fi-0710-mortgage-forms-20120710,0,2776630.story