CFPB set to deliver easier mortgage forms to consumers

The Home Mortgage Disclosure Act of 1975 demands lenders to make all loan data clear to pertinent public parties. User-friend provisions like this have been around for over 30 years, yet the subprime debacle of recent years proves that the mortgage process still needs an excellent deal of work. Thus, the Consumer Financial Protection Bureau plans to take steps to simplify mortgage disclosure forms so that any prospective homebuyer can understand them. Source of article – CFPB to make simpler mortgage disclosure forms a priority by MoneyBlogNewz.

Calling the mortgage disclosure form a ‘key priority’

The Wall Street Journal reports that the new mortgage disclosure form is a “key priority” of the CFPB, a Dodd-Frank organization that will start operations on July 21.

There’s a lot of paper documentation in detail of the mortgage agreement with all of the mortgage forms. Closing the loan costs a lot in fees and costs. There are a lot of provisions as well. The 1968 Truth in Lending Act and Real Estate Settlement Act from 1974 were put together with these forms. Mortgage disclosure forms will become friendlier than ever if the CFPB gets what it wants.

“We will be looking at our first (mortgage form) prototypes,” White House adviser and possible CFPB chairwoman Elizabeth Warren told Dow Jones Newswires.

In the past, this form has been opposed

The CFPB idea to simplify the forms was being reviewed by Elizabeth Warren with supports. In the past, there have been several attempts to simplify the mortgage papers to help customers understand the exact costs with mortgage loans. This never worked in the past. The CFPB post can be filled by somebody who might make an effort to help Warren. What the decision is on changes to the credit card industry will be determined in the future.

Citations

Home Mortgage Disclosure Act

ffiec.gov/hmda/

Wall Street Journal

blogs.wsj.com/developments/2011/04/18/warren-new-prototype-for-mortgage-forms-coming-in-may/?mod=google_news_blog

You should understand your mortgage

youtube.com/watch?v=MC515DJrhsM