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5/12/2020 Treasury Convenes Mortgage Disclosure Forum U.S. DEPARTMENT OF THE TREASURY Press Center Treasury Convenes Mortgage Disclosure Forum 9/21/2010 TG-864 Event Brings Together Stakeholders to Discuss Path Forward to Simplify Mortgage Disclosure Forms, Empower Consumers with Better, Easy-to-Understand Information WASHINGTON – With the improvement of disclosures for mortgages and other financial products a top priority for the new Consumer Financial Protection Bureau (CFPB), Treasury Secretary Tim Geithner and Elizabeth Warren, Assistant to the President and Special Advisor to the Treasury Secretary, today hosted a forum to seek input on the simplification of mortgage disclosure forms so that consumers have the clear and easy-to-understand information they need to make the financial choices that are best for themselves and their families. "Moving quickly to improve mortgage disclosures is one in a series of concrete steps we're taking to implement the historic consumer protections included in the Dodd-Frank financial reform law," said Secretary Geithner. "Wherever possible, we are committed to expediting completion of the law's requirements ahead of statutory deadlines. Simplifying these forms is a prime example of where we can and will accelerate our efforts to deliver real benefits to consumers as soon as possible." "Fine print obscures the cost of credit and makes it impossible for families to compare products. Too often, families come to understand the legalese only when they get bitten by it," said Professor Warren. "Streamlined disclosure can level the playing field and give families better tools to make better choices. This is particularly true in the mortgage market, where borrowers receive stacks of incomprehensible paperwork when they're looking for a loan." Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the newly created CFPB is charged with combining and simplifying two overlapping mortgage disclosure forms that the Truth in Lending Act (TILA) of 1968 and the Real Estate Settlement Procedures Act (RESPA) of 1974 respectively require lenders to provide to applicants. The forms have converged in some respects over time, yet they remain separate despite more than a decade of attempts to combine them. More importantly, they have remained highly technical and difficult for borrowers to understand. Merging these two forms into one clear, easy-to-understand document is a high priority for the CFPB as the Obama Administration continues its work implementing the historic consumer protections included in the Dodd-Frank financial reform law. The forum held today included consumer advocacy groups, housing counselors, financial literacy experts, mortgage companies, and other stakeholders. The feedback and ideas received at this and future meetings with additional stakeholders will be used to expedite the design and testing of new draft mortgage disclosure forms for consumers. Throughout this process, the CFPB implementation team will work closely with the Federal Reserve on their pending proposals for TILA disclosures and other new disclosure requirements under the financial reform legislation to coordinate those projects. While aiming to promote efficiency and minimize the implementation burden, the CFPB implementation team is committed to getting the CFPB ready to propose a consolidated form well ahead of the Dodd-Frank Act's July 2012 statutory deadline. The Dodd-Frank Act also included a number of provisions that allow the CFPB and other federal regulators to help put an end to mortgage lending practices that proved unsustainable and damaged the overall economy. For example, the Act requires mortgage lenders to verify a borrower's income or assets; prohibits incentives that encourage lenders to steer borrowers into higher-cost loans; and requires firms that buy mortgages and package them into securities to retain an interest in certain securities so they will, in other words, keep their skin in the game. These measures, together with better disclosures for consumers, will help produce a stronger, healthier, more sustainable mortgage market for the future. Secretary Geithner announced the Mortgage Disclosure Forum during an August 2, 2010 speech at New York University's Stern School of Business, where he outlined the next steps for implementing the Dodd-Frank financial reform law. In the coming months, the Administration will continue to lay out new milestones for establishing the CFPB, as well as the Administration's broader financial reform implementation efforts. ### https://www.treasury.gov/press-center/press-releases/Pages/tg864.aspx 1/2 5/12/2020 Treasury Convenes Mortgage Disclosure Forum https://www.treasury.gov/press-center/press-releases/Pages/tg864.aspx 2/2
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