Consumer Financial Protection Bureau Launches Initiative to Combine TILA and RESPA Disclosures
May 18, 2011 - The Consumer Financial Protection Bureau (CFPB) announced the effort “Know Before You Owe” aimed at combining two federally required mortgage disclosures into a single form.
The form would combine the federal Truth in Lending Act (TILA) mortgage disclosure and the Real Estate Settlement Procedures Act (RESPA) Good Faith Estimate into one disclosure. On May 19, the CFPB will begin testing two alternate prototype forms that are designed to be given to consumers who have just applied for a mortgage loan.
According to the CFPB, the testing take place over the next several months and involve one-on-one interviews with consumers, lenders, and brokers. Further, it will precede and inform the CFPB’s formal rulemaking process, which can’t take place until after July 21. However, the CFPB is required by the Dodd-Frank Act to issue proposed forms and implementing regulations by July 2012 for formal notice and comment.