The CFPB is close to wrapping up its “Know Before You Owe” project to design a simplified mortgage loan disclosure combining the disclosures required by TILA and RESPA. In addition to completing its proposed design, the CFPB will be writing rules to accompany the new disclosure forms. That message was delivered by Pat McCoy, the CFPB’s assistant director for mortgage and home equity markets, when she spoke to the Mortgage Bankers Association on September 26. Since launching the project in May, the CFPB has requested feedback on four rounds of draft disclosures. However, because those drafts have only been intended to substitute for the early TILA disclosure and the RESPA good faith estimate, it is unclear how the CFPB intends to approach other required TILA/RESPA disclosures. Under Dodd-Frank, the CFPB must issue proposed combined model disclosures and implementing rules by July 21, 2012.

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