The Consumer Financial Protection Bureau is set to release Wednesday two prototypes for a single, streamlined mortgage disclosure form.
The forms, which take different approaches to the issue, are designed to reconcile the requirements established by the Truth in Lending Act and Real Estate Settlement Procedures Act. The forms are a product of the agency's "Know Before You Owe" project, and it plans to test them with focus groups before beginning a formal rulemaking process.
"The testing … is aimed at designing a disclosure that will make the costs and risks of mortgage loans clear and make it easier for consumers to comparison shop for the right offer for them," according to a press release.
Senior CFPB officials will discuss the testing on a conference call with reporters Wednesday. The bureau launched a Web page last week soliciting feedback on the creation of a simpler disclosure form, asking consumers to submit their email addresses for a chance to weigh in on the prototype when it's ready.
CFPB officials unveiled the model forms in a series of meetings Tuesday with stakeholders, including bankers, industry groups and consumer advocates.
"I think it was a very good first start," said Ron Haynie, the president and CEO of ICBA Mortgage. "There's clearly a long way to go, but just from the sheer fact that it's one page front and back, I think for most people in the mortgage business that's a big step forward. For consumers, too."
