Federal consumer bureau proposes streamlining borrowing forms
THE AGENCY U.S. Consumer Financial Protection Bureau
THE ISSUE Consumers who take out mortgages are often faced with numbers and documents they must sign that are hard to understand.
WHATS PROPOSED Combining those forms into two easy-to-read forms would give consumers a clearer picture of what they are signing, the agency says.
The first form would be a loan estimate in which consumers would receive costs and risks of a mortgage. It would be given to consumers three business days after they submit a loan application.
The second form, a closing disclosure, would provide information on closing costs. It would be given to consumers three days before the closing date.
The forms would replace forms developed by different federal agencies that have overlapping information and inconsistent language. The proposed rules apply to closed-end consumer mortgages, not home-equity lines of credit or mortgages secured by mobile homes.
HOW YOU CAN BE HEARD Deadline for comments on the proposal is Friday, Sept. 7. You may comment electronically at http://www.regulations.gov. Check for docket number CFPB-2012-0028. Comments may also be mailed to Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G St., NW, Washington, DC 20552.
TO LEARN MORE http://www.consumerfinance.gov/
Rule to test credit ratings in setting premiums
THE AGENCY Idaho Department of Insurance
THE ISSUE Insurance companies are permitted to use an individuals credit rating to help them determine the premium for some types of insurance such as homeowners, renters and car. A poor credit rating can be seen as an increased credit risk, resulting in higher premiums. A good credit rating could result in a lower premium.
WHATS PROPOSED Insurers are not permitted to allow an individuals credit
rating to become a heavily weighted a measure in deciding how to set a premium. The Idaho Department of Insurance is proposing a rule that would say insurers ought to test how heavily they weigh credit as a risk factor by also using a neutral credit rating to determine how much of a difference credit is making in establishing premiums. If the rule is adopted, the Department of Insurance would likely use it as one way to measure credit-rating effects on premiums in the event of a consumer complaint.
HOW YOU CAN BE HEARD A public meeting on the proposal is set for 10:30 a.m. Friday, July 20, at the Idaho Department of Insurance, Third Floor Conference Room A, 700 W. State St. You may also submit written comments to William Deal, Department of Insurance, 700 W. State St., 3rd Floor, Boise, ID 83720-0043.
TO LEARN MORE Go to the July 4 edition of the Idaho Administrative Bulletin at http://bit.ly/JPmizN