Origination News reports the Consumer Financial Protection Bureau (CFPB) is continuing to test the new mortgage disclosure forms, this time with actual consumers in Springfield, MA. The agency wants to make certain that consumers understand the differences between two distinct but competing adjustable rate mortgages (ARMs): One that adjusts every three years and a 7/1 ARM. Patricia McCoy, CFPB assistant director for mortgage markets, in requesting public input, suggests consumers think of what additional information they may need in comparing the two forms, and what questions they might ask. With the comment period scheduled to end Sept. 19, McCoy says, ““We want to make sure the disclosure actually helps consumers understand the features of the competing loan products — from the overall loan amount to estimates of taxes and insurance costs.” In a related story, CFPB driver and interim head Elizabeth Warren is planning a run for the U.S. Senate seat now held by Scott Brown, R-Mass.
(Graphic credit CFPB)