A very big deal for the mortgage industry. In spite of some “chicken little sky is falling” talk by some in the industry, we’ll learn the new forms and processes and move on. As this New York Times article explains, the new forms are an attempt to make the process less confusing for consumers.
New rules and forms aimed at making mortgageinformation easier for borrowers to understand are scheduled to debut on Aug. 1.
The new forms are aimed at making it simpler for consumers to understand and compare loan terms, and to spot whether final terms are significantly different from a lender’s initial estimate.
The new forms were mandated by the Dodd-Frank financial reform law, which directed the Consumer Financial Protection Bureau to combine older disclosure documents required by two different federal laws, the Truth in Lending Act and the Real Estate Settlement Procedures Act. The newly organized forms will be used for mortgage applications submitted on and after Aug. 1.
“The forms are going to look very different,” said Andrew Pizor, a lawyer with the National Consumer Law Center. “They look a lot nicer and easier to understand.”
SRC: Read the full NYT article at: http://goo.gl/tkJ1Ih