WASHINGTON — The Consumer Financial Protection Bureau took two major steps toward reshaping the nation's residential mortgage market Monday, proposing revised mortgage disclosure requirements and stricter limits on high-cost loans.

The disclosure proposal, part of the bureau's "Know Before You Owe" project, is meant to simplify the current mortgage process by combining overlapping disclosure policies currently required under the Truth in Lending Act and Real Estate Settlement Procedures Act. The separate proposal would broaden the definition of a "high-cost loan", subjecting a greater pool of mortgages to restrictions on prepayment penalties and balloon payments.

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