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CFPB: Simpler Mortgage Disclosure Forms Coming In 2015

disclosure formNew mortgage disclosure forms that will potentially make loan signings run smoother will be rolled out in 2015, according to an announcement last month by the Consumer Financial Protection Bureau.

Borrowers frequently have questions and concerns about the terms of their loans because the forms used by most lenders are very complex and often received on short notice. The new standardized forms, available to preview on the CFPB website, have been redesigned to simplify key information.

The new Loan Estimate form replaces the current Good Faith Estimate of Settlement Costs (GFE) and initial Truth in Lending Disclosure (TIL). The new Closing Disclosure replaces the current HUD-1 Settlement Statement and final Truth in Lending Statement.

When the forms are rolled out on August 1, 2015, lenders also will be required to provide borrowers with their Loan Estimate three business days after the loan application date, and the Closing Disclosure three business days before the closing. This is designed to give borrowers more time to review and understand their loan terms.

The CFPB developed the forms to comply with a federal requirement to make mortgage disclosure documents easier to understand. The new forms also include contact information for the lender, mortgage broker, real estate brokers and closing agent, which can help a Signing Agent or borrower contact someone about a loan document issue during a signing.

David Thun is an Associate Editor at the National Notary Association.


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Dorrie Gartzke

20 Mar 2015

Should some borrower, in the future, chose to claim that they did not received the required documents within the approved time period, how is the lending agent to prove that the documents were "received". Are these documents to be sent by certified mail? What would be the process for substantiating that the borrowers received these documents within the required 3 business days? I recently completed a foreclosure review project in which many borrowers claimed that they were wrongly foreclosed on due to not receiving critical documents. The lender had only the hand typed comments of a clerk in the loan servicing system to indicate that the documents were mailed. This was not a very strong or convincing argument on the part of the lender.

Maria E Andrews

10 Jun 2015

So thankful to recieve this information, I am new to the Notary, and can use all your help. thank you so much.

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