The Consumer Financial Protection Bureau is working on a one-page RESPA/TILA disclosure form that will be "low cost" for lenders to fill out, according to Treasury advisor Elizabeth Warren who is managing the new bureau's inception.
She told a credit union audience Tuesday morning that lenders can provide the new disclosure document "earlier" in the shopping process. Warren promised that the form will be easy to read, allowing borrowers to understand the "real cost" of the product being offered.
A few months back President Obama appointed Warren a special advisor to the Treasury. The CFPB will be up and running by the end of July.
Although she gave certain details on the form, she could not say when it might be issued for public comment.
Warren stressed that combining Truth-in-Lending Act and Real Estate Settlement Procedures Act disclosures into a single form is a priority for the agency.
She also told the Credit Union National Association government affairs audience that lenders will not be able to lure consumers with low-cost financial products with high backend fees and costs. Costs of financial products will have to be disclosed upfront, she said.
