The Consumer Financial Protection Bureau announced proposed rules regarding residential mortgages, with the intent to simplify the process in what has become, for many Americans, a confusing and opaque process. The Bureau released the proposed rules in a Detailed Summary of the Proposal. It appears from the summary that the proposed rules specifically relate to the disclosure forms that lenders provide to consumers during the application process. Specifically, the detailed summary states:
Most affected by the proposed rules would be the Loan Estimate Form and the Closing disclosure form. The Loan Estimate Form discloses the terms of the mortgage and the Closing Disclosure Form provides the final loan terms and closing costs. In order to provide more clarity to applicants, the Bureau’s proposed forms cut several pages from the current forms that are used by lenders and attempt to make the forms better understood.
The proposal is open for review and comment until November 6, 2012. A full summary of the proposal can be viewed here. Additional information can be found on the Bureau’s website.