Kingsley-Kleimann Group
_p1_edited_edited.jpg)
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:
-
Combined two complex disclosures into one, streamlining them for transparency and simplicity by using plain language and user-centered design.
-
Through an iterative process, used qualitative testing to ensure consumer understanding.
-
Developed both English and Spanish versions to help consumers of varied backgrounds understand, shop, and compare.
-
Performed separate quantitative studies to validate the improvement of the forms.
Impact:
-
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.
-
Improved consumer understanding of mortgage loan transactions.
-
Improved ability of consumers to compare loans, make tradeoffs, and choose the best loan for their situation.
-
Bi-lingual disclosures advanced inclusion in the mortgage process.