The Consumer Financial Protection Bureau is an independent bureau within the Federal Reserve System that will enlighten consumers with information they need to make financial decisions that best fit their needs and the need of their families. The agency was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The CFPB (short name) will work to bring fairness and transparency for mortgages, credit cards and other consumer financial products. The reform has also given the agency the power to set and enforce guidelines and rules which will allow the banks and consumer financial services to all compete on a even keel and also for consumers to clearly see all the costs and features of these products and or services.
The CFPB in one of its efforts to create transparency for consumers has been working on simplifying the home buying process for consumers. “Home buyers are often hit with stacks of paper and forms that can be complicated and redundant,” says Elizabeth Warren*, Assistant to the President and Special Advisor responsible for the development of the CFPB. Oft times it left the consumer confused and a total lack of understanding of the costs or terms of their home loans.
The CFPB has created two drafts designs for a simpler mortgage disclosure form for consumers, in effort to promote a better understanding of the mortgage terms and cost. The CFPB now needs your input. Go to: http://www.consumerfinance.gov/know-before-you-owe-go/ review the forms and post your comments. This is your opportunity to participate in this process.
*Wall Street Journal May 18, 2011 New Agency Unveils Mortgage Disclosure Form