July 11th, 2012 8:56 AM by Sam Kader MLO130505
CFBP announced recently a new proposal regarding mortgage disclosures:
a) A "Loan Estimate" that outlines key features, costs and risks of a mortgage. The form would be provided within three days after submitting a loan application.
b) A "Closing Disclosure" that would help people understand the costs of closing, including fees that would be required to be provided to people at least three days before they close on the loan.
The forms also help people compare the costs of different loan offers, including the cost of the loans over time. The rules would apply to most home mortgages but not HELOC, reverse mortgages, mortgages on mobile homes and other specialized loans.
The proposed rule is open for public comment until Nov. 6.