Proposing a new way to present information about mortgages

After more than a year of research, testing, writing, and review, today we’re submitting a proposed rule to the Federal Register to create new, easier-to-use mortgage disclosures.

Take a closer look to learn more about the proposal. 

The proposal means different things to different people. For consumers, the proposed forms are simpler than the current forms and highlight certain key pricing information right on the first page. For industry, the forms are easier to explain to customers and the regulatory changes make the rule easier to comply with. And for everyone, the proposal offers a way to judge an experiment in public participation.

Early last year, we began a project to develop a more effective, and ideally simpler, set of mortgage disclosures. The Dodd-Frank Act mandates that the CFPB combine the Truth in Lending and Real Estate Settlement Procedures Act mortgage forms. We believe that these new, combined forms would be better if they are designed with input from the people who will actually use them.

We called this participatory approach “Know Before You Owe.”

The proposed rule we are releasing today is in many ways the result of that idea. We’ve provided several types of information to help you explore our work:

  • A side-by-side comparison of the current and proposed disclosures
  • A timeline of the project, from the beginning through today
  • The proposed rule, including an annotated disclosure connecting what goes on page one to what we’re proposing in the rule
  • Summaries of what the proposal means for consumers and for industry, as well as reports on what we learned through this process

The input we’ve received from people like you – consumers, industry, designers, regulators, and more – has helped to shape the proposal we’re submitting today. Thank you. Now we need you to help us one more time.

Review the proposal. Then submit a comment to let us know what you think of it.

Thank you,
The Consumer Financial Protection Bureau