WASHINGTON, D.C. – May 19, 2011 – (RealEstateRama) — David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA) issued the statement below in response to the public release of new prototype mortgage disclosure forms required under the Truth in Lending Act (TILA) and Real Estate Settlement and Procedures Act (RESPA).
“Making mortgages easier to understand for prospective borrowers has been a long term priority for the mortgage industry and we are pleased to see the initial prototypes take a step in that direction. One of the challenges this effort inevitably faces is trying to strike the right balance between simplification and providing as much information as possible to help borrowers make the most informed choices. Previous attempts at revising the forms have struggled with this paradox and this is going to be a focus of everyone involved in this effort.
“The CFPB staff has obviously put a lot of thought into the new forms and we look forward to participating in the review and revision process alongside consumers. One of MBA’s primary goals will be to make certain that not only do the new forms provide consumers with the information they need in a simple, clean way, but also that they can be implemented into lenders’ operations and systems with a minimum of disruption.
“Just 18 months ago the industry expended considerable costs on RESPA changes. We need to make sure that this new form is highly beneficial to consumers who will bear the implementation costs.”
For a link to the prototype forms and more information on the review and revision process, you can visit http://www.consumerfinance.gov/knowbeforeyouowe/
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mortgagebankers.org.
John Mechem (202) 557-2924