The CFPB has released a new toolkit that provides a step-by-step guide for mortgage-seeking consumers.
The bureau said it unveiled the toolkit ahead of the August 1 effective date of the “Know Before You Owe” mortgage disclosure rule to give lenders time to order and the print the toolkit, as well as integrate the electronic version into their mortgage origination systems.
“The new mortgage disclosure forms coming in August will help consumers comparison shop for mortgages and avoid surprises at the closing table,” CFPB Director Richard Cordray said. “We are releasing this toolkit well in advance of the effective date to help the mortgage industry come into compliance with the new rules.”
Creditors will be required to provide the toolkit, which replaces an existing booklet currently being provided to consumers, to mortgage applicants as part of the application process. The CFPB encouraged real estate professionals to provide the toolkit to potential homebuyers as well. It will feature interactive worksheets and checklists, as well as tips to help consumers find important information regarding the costs of the settlement process.
The CFPB said the toolkit would help consumers take full advantage of the new loan estimate and closing disclosure forms that lenders are required to provide starting August 1. An electronic version with fillable text fields will be made available so consumers can save their progress along the way. The bureau plans to release a Spanish language version later in 2015.
“This toolkit is a great resource for consumers navigating the home-buying process, and will help consumers make well-informed decisions about the biggest financial transaction of their life,” Cordray said.
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