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The top U.S. framers of the new Consumer Financial Protection Bureau today affirmed a priority of simplifying the mortgage disclosure form as part of a broader effort to give families “better tools to make better choices.”
U.S. Treasury Timothy Geithner and Harvard profession Elizabeth Warren, newly-named Assistant to President Obama, hosted a forum to seek input on simpler mortgage disclosure, a task made mandatory by the financial oversight reform laws enacted in July.
Under the Wall Street Reform and Consumer Protection Act, the newly created consumer agency is charged with combining and simplifying two overlapping mortgage disclosure forms that emerged as a result of the Truth in Lending Act (TILA) of 1968 and the Real Estate Settlement Procedures Act (RESPA) of 1974.
Both forms are required to be presented to mortgage applicants. And they have converged somewhat over the years, but remain separate and too complicated for consumers to make one of the biggest financial decisions of their lives – taking out a mortgage, Warren said.
Warren will report to both President Obama and Geitner as she creates the framework of the Consumer Financial Protection Bureau.
“Fine print obscures the cost of credit and makes it impossible for families to compare products,” Warren said in a statement. “Too often, families come to understand the legalese only when they get bitten by it. Streamlined disclosure can level the playing field and give families better tools to make better choices. “
She said simpler disclosure is particularly necessary in the mortgage market “where borrowers receive stacks of incomprehensible paperwork when they’re looking for a loan.”
The forum held today included consumer advocacy groups, housing counselors, financial experts, mortgage companies and other mortgage industry stakeholders.
A Treasury statement said feedback and ideas received at this and future meetings will contribute to expediting the “design and testing of new draft mortgage disclosure forms for consumers.”
Throughout this process, the consumer bureau team will work closely with the Federal Reserve on their pending proposals for TILA disclosures and the new disclosure requirements under the financial reform legislation.
“Simplifying these forms is a prime example of where we can and will accelerate our efforts to deliver real benefits to consumers as soon as possible,” Geithner said.
So just when we get the GFE firgured out, we may get yet another form?
Posted via email from Title Insurance PR Newswire DALLAS, Sept. 20 DALLAS, Sept. 20 /PRNewswire-FirstCall/ — First American Title Insurance Company announced today, at The Five Star Default Servicing Conference and Exposition in Dallas, the formalization of First American’s National Title Insurance and Settlement Solution (FANTISS) network. The FANTISS network provides a central point of contact to assist lenders in closing large volumes of real estate owned (REO) transactions through First American Title Insurance Company’s network of local offices nationwide. FANTISS team members provide lenders with a single point of contact throughout the settlement process, allowing for a greater level of simplicity and efficiency when closing multiple-property portfolios. Posted via email from Title Insurance Submitted by Tyler Durden on 09/20/2010 08:39 -0500
As we pointed out last week, a certain judge in Florida set quite a precedent when he found that JPM, as servicer for a Fannie mortgage, had committed court fraud by foreclosing while not in possession of the actual mortgage. We then concluded that “The implications for the REO and foreclosures track for banks could be dire as a result of this ruling, as this could severely impact the ongoing attempt by banks to hide as much excess inventory in their books in the quietest way possible.” Not a week has passed since, and we are already proven right. Today, Bloomberg discloses that GMAC Mortgage, a unit of the affectionately renamed Ally Bank, has halted all foreclosures in 23 states, including Florida, Connecticut and New York. Who would have thought that being caught with your pants down, doing something so blatantly illegal as collecting on something you do not own, would actually have adverse consequences. And GMAC is just the beginning – we expect many more mortgage servicers to scurry now that the light has been shone on their shell game. The silver lining – the permabull pundits will cheer this development now that foreclosures will plunge off a cliff as mortgage holders and servicers scramble to reconcile who owns what, and just on whose balance sheet the mortgage flows should show up. Posted via email from Title Insurance
Continuing Ed for Title Agents
First American Title Insurance Company Announces the Formalization of a Unique National REO Title and Settlement Services Network
—National Services Group Provides Single Point of Contact and Local Closings for Purchasers of Multiple-property Portfolios—
Continuing Ed for Title Agents
GMAC Halts All Foreclosures In 23 States On Heels Of Florida Judge Finding JPM Committed Court Fraud In Mortgage Misappropriation | zero hedge
Continuing Ed for Title Agents
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