The Dodd-Frank Act requires the Consumer Financial Protection Bureau (CFPB) to combine Truth in Lending Act and the Real Estate Settlement Procedures Act disclosures. The CFPB began with the early disclosures (the combined early TIL and GFE). Now they are working on the closing disclosures (the combined TIL/HUD-1).
Early disclosures – For most lenders the early TIL and GFE disclosures currently include four to six pages. The proposed combined form consists of two pages. The CFPB has done a pretty amazing job of simplifying the form.
Closing disclosures – For most lenders the final TIL disclosures and the HUD-1 Settlement Statement currently include four to six pages. The proposed combined form consists of five to six pages; not so amazing. In addition to combining the existing TIL and HUD-1 the form also includes several new disclosures required by the Dodd-Frank Act.
CFPB currently is presenting two versions of the combined forms. They are asking consumers and members of the lending industry to vote, in separate polls, on the preferred version. The latest versions of the form and the polls are available at http://www.consumerfinance.gov/knowbeforeyouowe/. This is your chance to impact the development of the form that you will use for years to come.