Simpler documents on the horizon
The Consumer Financial Protection Bureau, or CFPB, has combined four complicated forms that borrowers receive -- two when they apply for a mortgage and another two before they close on a home -- into two simplified documents. The changes are a provision of the "Know Before You Owe" rule.
The original plan was to require lenders to start using the new loan estimate and closing disclosure forms Aug. 1, but the CFPB recently proposed an amendment to delay the effective date until Oct. 3 because of an administrative error.
Mortgage industry groups collectively let out a sigh of relief.
"August is a heavy closing month, so if there was disruption it would have been quite sizable," Yun says.