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Monday
Jan162012

New Draft of Settlement Statement

 

The Consumer Financial Protection Bureau released its second round of alternative prototypes of a settlement disclosure form to be used during closing to replace the current HUD-1 and Truth in Lending disclosure. 

Right now, anyone who applies for a mortgage gets two disclosures that contain basic information about the mortgage: the Truth in Lending form and the Good Faith Estimate.

Last month, the CFPB tested two prototypes for a disclosure of final loan terms and closing costs. They were both similar. This time around, the CFPB created a different format for this information which are much longer. The current disclosures can be viewed online and are two different formats in five page drafts called Mimosa and Sassafras are available on the CFPB website.