The Consumer Finance Protection Bureau has proposed revisions to financial disclosure forms that are included in mortgage closing document packages in an effort to simplify mortgage closings.
The redesigned Good Faith Loan Estimate and Closing Disclosureforms attempt to make it easier for borrowers to understand the key terms of a loan, such as interest rates, monthly payments, loan amount and closing costs.
The two forms, required for all mortgages by the Truth In Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), currently contain similar information that is described in different terms, according to the CFPB. This often confuses consumers and industry employees alike, and leads to questions at the closing table that Notary Signing Agents are not allowed to answer.
By using plain language and reducing redundancy, the forms should make loans closings go more smoothly. The CFPB is seeking public comment regarding the proposed revisions. Signing agents and others have until November 6, 2012, to submit comments.
The National Notary Association has scheduled webinars on August 8 and 9 to brief Notaries about the changes.
Michael Lewis is Managing Editor at the National Notary Association.