Final GFE Rule Coming, HUD-1 Redesign About to Start

The Consumer Financial Protection Bureau plans to redesign the HUD-1 settlement sheet after it completes a final round of public comments on the good faith estimate form next month, according to agency assistant director Patricia McCoy.

The assistant director for mortgage markets said the bureau wants the new GFE mortgage application form to mesh with a new HUD-1 settlement sheet.

“The front–end form and the back-end will be harmonized to fit together,” McCoy said Monday morning at the Mortgage Bankers Association's regulatory compliance conference in Washington.

She noted the CFPB will complete a fifth round of public comments on its GFE redesign in a month, and then will draft regulations to merge the Real Estate Settlement Procedures Act, and Truth in Lending Act disclosures into a new application form.

In a few months, CFBP will start a similar process of seeking round after round of public input on a redesign of the HUD-1 settlement sheet.

The bureau wants to issue a proposed rule for merging the RESPA/TILA disclosures by July 2012, she said.

At the same time, CFPB will request one more round of public comment on the redesigned GFE application form and HUD-1 settlement sheet.