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Bankers Say Proposed Mortgage Disclosures Will Add Confusion

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As the Consumer Financial Protection Bureau streamlines mortgage disclosure forms, banks worry that the proposed simplification may become a burden.

The concern from across the industry poured in with more than 2,000 letters responding to the CFPB's required plan. Bankers argued several requirements would add constraint and confusion, "including the rigorous timeline for presenting borrowers with the new forms, limited deviation of estimated charges between initial and final disclosures, and an 'all-in' annual percentage rate'," writes American Banker's Joe Adler.

Bankers fear that the proposal will detract from the quality of disclosures and become an unnecessary encumbrance. "We are concerned that some aspects of the proposal will add to 'information overload,'" adds Sy Naqvi, chief executive of PNC Mortgage, in a letter to the CFPB.

The CFPB, created under the Dodd-Frank Act, assumed rulemaking for disclosures and launched the project of combining the Truth in Lending Act and Real Estate Settlement Procedures Act forms.

For the full piece see "Proposed Mortgage Disclosure Forms Increase Burden, Banks Say" (may require subscription).

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Comments (1)
http://video.cnbc.com/gallery/...

It isn't alledged. I bankrupted many forigin cities who bought the CDOs

The
Mortgage Scandal and Depression: Take 6 million homes, Rating agencies
over value them by changing the formula for appraisal. Add home owners
credit card bills and home improvements to the mortgage to induce home
owners to refinance; Overstate earnings, without verification, to qualify
the home owner; then combine parts of each mortgage with hundreds of
others and sell them as a CDO (Collateral Debt Obligation) rated triple A,
world wide to investors through the largest financial firms in America to
city governments world wide who don't understand what they are buying, and
you create a Global Economic Meltdown and bankrupt cities. 1 hour video by
CNBC's David Faber
Posted by peterpalms | Wednesday, November 21 2012 at 6:48PM ET
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As Dodd-Frank's impact continues to be felt far beyond banks' compliance departments, American Banker is your eyes and ears. In addition to our award-winning coverage, we now also scour a range of resources to aggregate even more of the news you need on this vital topic.
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