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06 April 2011

RESPA to combine with Truth in Lending form

WASHINGTON – April 6, 2011 – The Consumer Financial Protection Bureau (CFPB) is consolidating the Truth in Lending Act and Real Estate Settlement Procedures Act forms into a one-page document that will be easier for consumers to understand. It will also be cheaper and easier for lenders to complete.

The forms will be designed by a consulting firm hired by the CFPB and tested nationwide to get consumer feedback.

The new disclosures must also comply with state RESPA laws because the agency has decided against pre-emption.

Meanwhile, the American Land Title Association and Consumer Mortgage Coalition and other groups are drafting their own disclosure forms.

Source: National Mortgage News (04/04/11) Vol. 35, No. 27, P. 3; Collins, Brian

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