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.