• CFPB Takes First Step in Consolidation of Residential Purchase Closing Documents into a Single Form
  • November 16, 2011 | Authors: Francis X. Riley; Nicholas C. Stewart
  • Law Firms: Saul Ewing LLP - Princeton Office ; Saul Ewing LLP - Washington Office
  • In kicking off the second phase of its “Know Before You Owe” initiative, which has the stated goal of improving the way consumers are provided with and understand their final mortgage loan terms and closing costs, the CFPB released two comparison prototype forms which consolidate the HUD-1 Settlement statement and TILD form. These two options, known as “Hornbeam” and “Ironwood” are online at http://www.consumerfinance.gov/knowbeforeyouowe/. Consumers and industry professionals are being asked to provide their comments. The HUD-1 - which is required under Section 4 of RESPA and 24 CFR part 3500 (Reg. X) of HUD’s regulations - is a statement of actual charges and adjustments paid by the borrower at or before closing. The TILD document is dictated by the Truth-in-Lending Act (“TILA”) and under 12 CFR 226 (Reg. Z) of the Federal Reserve Board’s regulations.