The supposedly simplified form has been on therndrawing boards since before CFPB was formed and is intended to replace formsrnmandated by the Truth in Lending Act (TILA) and the Real Estate SettlementrnProcedures Act (RESPA).  A simplifiedrnformat for these disclosures was first suggested by Elizabeth Warren in 2011rnand was among the requirements of the Dodd-Frank Wall Street Reform andrnConsumer Protection Act which consolidated responsibilities for the disclosuresrnfrom two separate agencies into CFPB.  </p

According to the Bloomberg’srnCarterrnDougherty, use of the new form would begin on August 1,rn2015.  Like the forms it will replace, itrnwill contain information on interest rates, monthly payments and closing costsrnbut will present them in a less cluttered format and with key pointsrnhighlighted.    </p

Dougherty quotes Camden Fine, president of thernIndependent Community Bankers of America as saying he had been told by Bureaurnofficials that they were “not inclined” to exempt small lenders from the rulernwhich Fine called a regulatory burden. rnSmall lenders are not exempted from the current disclosure requirementsrnbut they have maintained that their close relationships within theirrncommunities make a new form unnecessary.</p

The form will be the latest in a series of newrnregulations required by Dodd-Frank and implemented primarily by CFPB thatrnaffect loan originators, lenders, and servicers.  Many of the regulations go into effect inrnJanuary 2014 and small lenders in particular have complained that individuallyrnand in the aggregate they present a significant burden for community banks andrnother small lenders.  Many of thernspokespeople for this group have said that the regulations could drive some suchrninstitutions out of the mortgage business.</p

Tomorrow’s field hearing will feature remarks byrnCordray and testimony from consumer groups, industry representatives, andrnmembers of the public.  In announcing thernhearing CFPB said it “is possible this hearing will be used by the CFPB to announce thernissuance of the TILA-RESPA integrated disclosures final rule.” 

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