Tags:
Quantitative Testing, Qualitative Testing, Mortgage Lending, Disclosures, Compliance
Loan Estimate and Closing Disclosure
Clarity in the mortgage lending process
Background:
When the Consumer Financial Protection Board needed help responding to a mandate to improve consumer understanding of mortgage loans and transactions, they called on Kingsley-Kleimann to create a disclosure that complied with the standards of the Truth In Lending Act and the Real Estate Settlement Procedures Act.
What We Did:
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Combined two complex disclosures into one, streamlining them for transparency and simplicity by using plain language and user-centered design.
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Through an iterative process, used qualitative testing to ensure consumer understanding.
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Developed both English and Spanish versions to help consumers of varied backgrounds understand, shop, and compare.
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Performed separate quantitative studies to validate the improvement of the forms.
Impact:
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Millions of consumers, at every financial institution across the United States, are presented with an easy to read and understand loan estimate and closing disclosure.
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Improved consumer understanding of mortgage loan transactions.
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Improved ability of consumers to compare loans, make tradeoffs, and choose the best loan for their situation.
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Bi-lingual disclosures advanced inclusion in the mortgage process.