The Consumer Financial Protection Bureau will tap small lenders to review its approach to merging the RESPA and TILA mortgage disclosure forms before issuing a proposal for public comment.
"We will be coming out with the proposed rule by the summer," CFPB director Richard Cordray told a House government oversight panel Tuesday afternoon.
He noted that the bureau has been working on merging the Real Estate Settlement Procedures Act, and Truth in Lending Act disclosures since last May. The agency's goal is to provide clearer and more useful information to homebuyers who have just applied for a mortgage.
"We are going to have small business briefing panels starting in the spring" to review the RESPA/TILA proposal, Cordray told the oversight panel.
Later in his testimony, the director indicated that the review panels might be formed in a month or two.
Last year, the bureau issued prototype mortgage disclosure forms six times to receive public input.
"The CFPB received feedback on the forms from more than 24,000 members of the public, industry participants and market experts," Cordray said.
Bureau officials are currently drafting the regulations that will guide implementation of the new mortgage disclosure forms.
CFPB also is working on re-designing the HUD-1 settlement sheet so it complements the new mortgage disclosures.
