New TIL + GFE Combination Form in the Works

July 21, 2011

in PLTA News

By Sue Morgan, PLTA Public Relations Committee Chair

On May 18, 2011 the Consumer Financial Protection Bureau (CFPB) released two draft designs for the new “single, simpler mortgage disclosure form.”  The goal of the new form is to combine the information found on the TIL and GFE into one all-inclusive, easy to read form that borrower’s can truly understand.  The bureau is asking consumers and industry professionals to visit their site and vote on their preference of Option A or Option B.  They anticipate this first step will take months and there will also be opportunities for individuals to communicate their thoughts as the Bureau moves forward with the process.

The Bureau came into existence in July, 2010 when Congress passed and President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act.  It was this Act that then led to the creation of the CFPB and many of the pieces of the Act relating to the CFPB will go into effect on July 21, 2011.

According to the Bureau’s website, “The consumer bureau will also implement and enforce new protections under the Dodd-Frank Act that will:

  • Require mortgage lenders to determine that a borrower has the ability to repay a loan by verifying income and making sure borrowers can afford loans even after teaser rates expire and payments rise;
  • Prohibit prepayment penalties, which can make it expensive to refinance, for high cost loans and adjustable-rate mortgages;
  • Put an end to practices like paying bonuses to mortgage brokers and loan officers who steer borrowers into higher-cost loans than they otherwise qualify for; and
  • Require clearer and simpler disclosures about international money transfers.”

To learn more about the disclosure form and the CFPB, visit their site at

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