LOAN ESTIMATE AND CLOSING DISCLOSURE
What We Did
Worked with the Consumer Financial Protection Bureau on its first major consumer project: developing two disclosures in English and Spanish that consumers could use to understand, shop, and compare.
Conducted iterative qualitative testing of the disclosures with 114 consumers and lenders/brokers.
Conducted a separate quantitative validation study to assess how the disclosures performed against the current forms.
Participants used the new forms to make sophisticated tradeoffs between loans and to accurately identify basic loan facts.
Integrated disclosures outperformed the current disclosures in testing – many at a statistically significant level.
The Loan Estimate won the Center for Plain Language’s 2014 Grand ClearMark Award for the best plain language document in the U.S.
The Loan Estimate and Closing Disclosure are in use with every financial institution in the U.S. (If you purchase or refinance a home, you will use these forms!)