The Consumer Financial Protection Bureau (CFPB) announced on Wednesday that it will combine two federally required mortgage disclosures into a “single, simpler form that makes the costs and risks of the loan clear” and allows consumers to comparison shop for the best offer.
The CFPB says that it will begin testing the two “alternate prototype forms” through its Know Before You Owe project on May 19. The two forms are designed to be given to consumers who have just applied for a mortgage loan, the CFPB says, and the “testing–which will take place over the next several months and involve one-on-one interviews with consumers, lenders, and brokers–will precede and inform the CFPB’s formal rulemaking process.” The CFPB says it has also posted the prototypes on its web site with an interactive tool to gather public input about the designs.