CFPB Issues Final Rule on New Mortgage Disclosure Forms

The Consumer Financial Protection Bureau today issued a final rule requiring new mortgage disclosure forms that combine existing disclosures required under the Truth in Lending Act and the Real Estate Settlement Procedures Act. The new forms, which the CFPB has developed for more than two years as part of its “Know Before You Owe” initiative, include information such as interest rates, monthly payments and closing costs.

The CFPB said the rule requires mortgage lenders to use the new disclosures, implements rules on when the new forms are to be given to consumers, and limits how the final terms can change from the original loan estimate.

The CFPB said the Loan Estimate form, which replaces the early Truth in Lending statement and the Good Faith Estimate, should be provided to consumers within three business days after they submit a loan application. The Closing Disclosure form, which replaces the final Truth in Lending statement and the HUD-1 settlement statement, should be delivered within three business days before closing on a loan.

The rule is effective Aug. 1, 2015.

Read the Final Rule.

Read CFPB Fact Sheet on Disclosures.

Read CFPB Fact Sheet on Testing Process.