Several weeks ago I read that the financial regulation bill passed last year (Dodd-Frank) requires, among other things, that the Good Faith Estimate and the Truth In Lending disclosure forms must be “unified.” That really hasn’t had much visibility so far, but this article appears today:
The article begins: “The new federal Consumer Financial Protection Bureau will soon begin writing and testing a simplified mortgage-disclosure form aimed at making it easier for borrowers to compare deals from different lenders.”
As I recall, that was the stated purpose of the new GFE last year. I don’t know anybody who thinks that form simplified anything or helped consumers understand their loans. In fact, most or all lenders still use some version of the “old” GFE to help explain the “new” one.
And now they want to add Truth In Lending information, and make the whole thing shorter:
“[Elizabeth] Warren [appointed to create the consumer protection agency] has said she would like to see a standard document of one or two pages to replace about 80 percent of the much longer mortgage disclosures mandated by the Truth In Lending Act and the Real Estate Settlement Procedures Act.”
This should be fun. Who knows? Maybe this time they’ll get some advice from somebody who actually works in the industry.