The Consumer Financial Protection Bureau (CFPB) is entering 'round four' of testing new mortgage disclosure forms, and is now requesting public input on what should be said regarding adjustable rate mortgages.
CFPB, using the same disclosure form, said it wants to be sure the information helps consumers understand the features and costs of two competing products: an ARM that adjusts every three years and a 7/1 ARM.
"As you compare the forms, think about what information you were able to use to make your decision, and what additional information you might need,” advised CFPB assistant director for mortgage markets, Patricia McCoy. “What questions would you have after looking at these two loans using this version of the form?"
McCoy made her comments on a CFPB blog.
The comment period ends Sept. 19. Bureau officials also are testing the forms with actual consumers in Springfield, Mass.
"We want to make sure the disclosure actually helps consumers understand the features of the competing loan products -- from the overall loan amount to estimates of taxes and insurance costs," McCoy said.