Warren: New Prototype For Mortgage Forms Coming In May
Source: The Wall Street Journal | April 18, 2011
watchdog will start testing a new version of the standard mortgage disclosure form next month. The planned revamp of the forms borrowers receive when taking out a home loan is a key priority of the new Consumer Financial Protection Bureau, which was created as part of the Dodd-Frank financial overhaul law. Currently, home buyers receive two complicated mortgage disclosure forms required by the Truth in Lending Act of 1968 and the Real Estate Settlement Procedures Act of 1974. Borrowers receive reams of documentation when taking out a mortgage, including forms that list the cost of obtaining credit and another set that details the costs associated with closing on the loan. The forms are confusing to many homeowners, and a key task of the new financial protection agency is to make the mortgage-disclosures more consumer-friendly. "We will be looking at our first [mortgage form] prototypes," in May, White House adviser Elizabeth Warren said. [Read this article]
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