New Mortgage Disclosure Rule Finalized by CFPB

The Consumer Financial Protection Bureau (“CFPB”) has finalized new, streamlined mortgage disclosures that are intended to improve the way consumers receive information about mortgage loans, both at the application and closing stages.  The implementation deadline for the disclosures is August 1, 2015 and will follow various new mortgage rules that take effect in January 2014.

According to CFPB Director Richard Cordray, the new ‘Know Before You Owe’ mortgage forms have been designed to improve consumer understanding, aid comparison shopping and help prevent closing table surprises for consumers.

The new forms received by consumers during the process of obtaining a mortgage loan include The Loan Estimate and The Closing Disclosure.  The former is to be provided within three days of a consumer submitting a loan application.  The latter is to be provided to a potential borrower within three days of the loan closing.

The disclosures are required by the Truth in Lending Act (“TILA”) and the Real Estate Settlement Procedures Act (“RESPA”).   The new forms integrate existing disclosures and implement some new disclosure requirements from the Dodd-Frank Act.

In short, following significant qualitative testing, the new forms are intended to simplify a lot of information so that consumers are better able to make informed decisions.

Please contact us at (212) 756-8777, via email to or via our Online Case Submission Form.