Know Before You Owe: The Last Dance...or is it?

Know Before You Owe: The Last Dance … or is it?

This week the CFPB is in Austin, Texas! We’re conducting the final round of testing of the integrated disclosures you receive at two different points in the mortgage process. You receive the first when applying for a loan, and you get the other at closing. After this, we’ll be shifting to the second phase of this project: writing the proposed rules for these disclosures. But before we move on to the next phase, we need your help one more time.

We’d like you to share your thoughts on these revised prototypes for the Loan Estimate and the Settlement Disclosure. Because there is only one prototype for each disclosure, we’re not going to use the side-by-side comparison tool this time. To weigh in, post a comment to this blog or email us at KnowBeforeYouOwe@cfpb.gov.

As you look at these prototypes, think about these questions:

•Can you easily find key loan terms?
•Are you able to identify changes to the loan terms or costs?
•Do you know who to contact to discuss your loan or changes to your loan?
•Do you have the information you would need to feel comfortable closing on the loan?
•Are the disclosures easy for lenders and settlement agents to use and explain to consumers?

You’ll notice that these prototypes use a similar format for closing costs, enabling the two forms to work well together. We’ve also tried to make the forms look consistent in other ways, like using similar terminology. Before they sign on the dotted line, we want consumers to have a clear understanding of both what they owe and whether it’s what they were expecting. That’s what Know Before You Owe is all about.  Read more.