A recent New York Times article describes the federal Consumer Financial Protection Bureau’s efforts to reduce required mortgage paperwork and improve disclosure of key mortgage terms to home borrowers. These efforts are part of the Bureau’s “Know Before You Owe” project.
The Bureau is attempting to combine two forms currently required by federal law—one required by the Truth in Lending Act and another by the Real Estate Settlement Procedures Act. According to the article, while the forms are intended to convey basic mortgage information to consumers, they may be difficult to understand as well as redundant.
The Bureau is testing two sample combined forms which are available for comparison on its website.
