A new mortgage disclosure form issued by the Consumer Financial Protection Bureau is currently in the planning stages and is expected to be available to the general public sometime this year, according to a report from Bloomberg News. The government agency is currently accepting bids to create the form.
The stated goal of the CFPB’s document is to make mortgage borrowing more transparent for consumers, the report said. By doing so, it is likely to create better home loan deals for Americans. In addition, it should allow smaller local lenders to compete with major national banks.
“If buyers are better informed and understand the financial commitments they are entering into, they will be better able to make comparisons among lenders and the market will be more competitive,” Alex Pollock, a resident fellow at the American Enterprise Institute, told the news agency.
The document is expected to be about a page or two in length, and should replace roughly 80 percent of the disclosures currently mandated by federal law, the report said. Elizabeth Warren, a law professor appointed by President Barack Obama to oversee the CFPB, has stated in the past that she believes the current documents are too big and can be confusing for consumers.
The increase in refinances in mid-2010 may have been sparked by consumers comparing national interest rates to get the best deals available. At that time, rates approached and occasionally reached all-time lows.