In this process the CFPB is renaming some of the forms associated to the mortgage process. On October 1, the Good Faith Estimate & Truth In Lending will be going away and in its place with be "The Loan Estimate", which is a combination of the two old forms. See a sample of the new form here.
- The Loan Estimate: This form will be provided to consumers within three business days after they submit a loan application. It replaces the early Truth in Lending statement and the Good Faith Estimate, and provides a more detailed summary of the key loan terms and estimated loan and closing costs. Consumers can use this new form to compare the costs and features of different loans.
The next form change will be the currently named HUD 1 Closing Statement. This will also take on a new name of "The Closing Disclosure". See a sample of the new form here.
- The Closing Disclosure: Consumers will receive this form three business days before closing on a loan. It replaces the final Truth in Lending statement and the HUD-1 settlement statement, and provides a much more detailed accounting of the transaction.
The purpose for the changes as per the CFPB are to improve consumer understanding, better comparison shopping, and avoiding costly surprises at the closing table.
