Treasury Secretary Tim Geithner and Elizabeth Warren, assistant to the president and special advisor to the treasury secretary, hosted a forum Sept. 21 to “seek input on the simplification of mortgage disclosure forms,” according to a news release from the Treasury Department.
One of the tasks of the new Consumer Financial Protection Bureau is to combine two overlapping mortgage disclosure forms required of lenders by the Truth in Lending Act and the Real Estate Settlement Procedures Act. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB is required to present a consolidated form by July 2012.
Warren pointed out the need for simplified disclosure rules, noting that consumers often become aware of restrictions too late.
“Too often, families come to understand the legalese only when they get bitten by it,” she said in the Treasury statement. “Streamlined disclosure can level the playing field and give families better tools to make better choices.”