CFPB Will Use Mortgage Bankers to Test Consumer Disclosures
Although the Consumer Financial Protection Bureau has yet to finish its work on merging RESPA and TILA forms, the agency Thursday proposed allowing certain lenders “on a case-by-case basis” to research and test informative, cost-effective disclosures to applicants.
The agency said it would offer “limited time exemptions from current federal disclosure laws in order for those companies to research and test informative, cost-effective disclosures.”
The lenders that it picks will then share the results of their trial disclosures with the agency.
CFPB said it will then use the information “to improve its disclosure rules and model forms.”
“Any effort the CFPB puts forward to further their understanding of the day-to-day operation of the mortgage industry is applauded,” said New Jersey mortgage broker Brian Benjamin.
“This proposal would also allow the CFPB to perform a full analysis and better understand and how the consumer interacts in a real world transaction with the appropriate disclosures.”
“I think it's a good idea,” said Marc Savitt, president of the National Association of Independent Housing Professionals. “It helps limit unintended consequences.”