The American Land Title Association (ALTA) says it is looking forward to working with the Consumer Financial Protection Bureau (CFPB) on improving consumer disclosures in mortgage transactions.
Under the Dodd-Frank Act, the newly created CFPB will attempt to simplify the Good Faith Estimate (GFE) and Truth in Lending (TILA) mortgage disclosure forms. ALTA members prepare and provide to consumers the HUD-1 Settlement Statement (HUD-1), which discloses to consumers their final loan and settlement costs, including those for origination, closing, recording, tax and other charges associated with the transaction. Quotes for these charges are presented to borrowers in the GFE and TILA.
According to a statement from the organization, ALTA has written to the U.S. Treasury Department and the CFPB to consider several recommendations to improve the disclosure forms. The ALTA release did not expand on its specific recommendations.
‘We do not represent the borrower, lender, seller or any other party in a transaction,’ says Anne Anastasi, president of ALTA. ‘Because of our role and proven track record supporting improved consumer disclosure, we have a great understanding of consumers' concerns regarding costs associated with the real estate transaction."