WASHINGTON (Legal Newsline) – The Consumer Financial
Protection Bureau (CFPB) announced proposed updates to its Know Before You Owe
mortgage disclosure rule.
The rule went into place last year. The CFPB has developed
updates to formalize guidance in the rule and provide greater clarity and
certainty. The organization believes it will help facilitate compliance within
the mortgage industry.
“Getting a mortgage is one of the most important financial
choices a consumer will ever make,” CFPB Director Richard Cordray said. The
Bureau’s rules are designed to make sure consumers have the information they
need, in a form they can easily understand and use, before making the decision.
Our proposed updates will clarify parts of our mortgage disclosure rule to make
for a smoother implementation process.”
The Know Before You Owe rule creates requirements about
forms needed for applying for and closing a mortgage. The rule also dictates
when these forms must be given to consumers. Proposed changes to the rule
include tolerance for the total of payments, housing assistance lending, the
coverage of cooperatives and added privacy for the sharing of information.
The CFPB is seeking comments from stakeholders and the
general public. These are due by Oct. 18 and will be considered before final
regulations are issued.