Saturday, July 30, 2011

Know Before You Owe - RESPA

Just last week, on July 21, 2011, the Real Estate Settlement Procedures Act (RESPA) was shifted by the Department of Housing and Urban Development (HUD) to being administered and enforced by the Consumer Financial Protection Bureau (CFPB). To visit the CFPB's website, click here.

In one of CFPB's first initiatives, the Bureau is researching Mortgage Disclosure Statements and making changes for the stated purpose of Simplicity. To have your voice heard on this initiative, click here.

The purpose of the Bureau's initiative is to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires the Bureau to combine the 2 page Truth in Lending Disclosure Form and the 3 page Good Faith Estimate Form.

Lieb at Law supports this initiative because we know from experience that home purchasers do not read forms when they are cumbersome. The key is simplicity with easy to access graphical layouts. We hope that this project is only the start in simplifying imperative consumer information for home mortgage borrowers.