Ahead of the August deadline for lenders to provide new Loan Estimate and Closing Disclosure forms, the Consumer Financial Protection Bureau unveiled a new mortgage shopping toolkit Tuesday.
The "Know Before You Owe" toolkit takes consumers step by step through the mortgage process, helping them understand the costs of real estate settlement, what they can afford and how to find the best mortgage, according to a CFPB press release. The consumer watchdog agency said it released the toolkit far in advance of the Aug. 1 rollout of the new disclosure forms so that the industry could acclimate and integrate the guide into its lending practices.
Creditors must provide the toolkit to borrowers during the application process, though the CFPB does suggest other real estate professionals do the same.
The toolkit, which replaces an existing booklet that credit currently must give to applicants, comes in print and electronic versions. The electronic version is interactive, with fillable text fields and checkboxes, and allows users to save their progress as they use it.
Thus far, the mortgage industry has been receptive to the new toolkit, with Mortgage Bankers Association president and CEO David Stevens welcoming its release.
"We fully support efforts by the CFPB to help inform and educate consumers who are working through the complexities of the mortgage process," he said in an announcement following the CFPB's introduction of the new toolkit. He added that the MBA plans to review the guide's details and provide the CFPB with feedback.
