The existing TIL (Truth in Lending) and GFE (Good Faith Estimate) required by the government on residential mortgages are a disaster. The changes made over the past few years, have made two documents that should have helped disclose mortgage loan terms to a borrower, more confusing… not just to borrowers, but to escrows, and lenders.
The Customer Financial Protection Bureau is attempting to redesign and combine the two disclosures into a more simple, actually useful, document. So far they are doing a pretty good job. Another smart move is they have actually been coming to the mortgage industry, and consumers, for their feedback.
The front page “shopping sheet” of the prototype has been fairly solidified. The second page “closing costs” has been whittled down to two versions. Either one would be light years better than the present disclosures.
If interested in looking over the prototypes go to the CFPBs site.
I’m looking forward to the new document. After 25 years in the real estate/loan industry, it’s the first time a gov’t agency is making things easier, with less paper… Now if they would only combine some of the ominous gov’t agencies, so there would be less duplication of jurisdiction, and contradiction in regulations… but I’ll take whatever I can get.
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