Which forms were integrated to create the Loan Estimate?

The Loan Estimate form, which is designed to provide consumers with clear and concise information about the terms of their mortgage, consolidates and streamlines information from the Good Faith Estimate (GFE) and the early Truth in Lending (TIL) disclosure. This integration serves to enhance the clarity and transparency of the mortgage process for borrowers, allowing them to easily compare costs and terms from different lenders.

The Good Faith Estimate provided an estimate of the settlement charges, while the early TIL disclosure explained the borrowing costs by detailing the interest rate and other fees involved in the loan. By merging these two important documents, the Loan Estimate simplifies the process, ensuring that borrowers receive all necessary information they require at the beginning of the mortgage application process, without being overwhelmed by multiple forms.

This integrated form is part of regulatory changes aimed at protecting consumers and enhancing their understanding of mortgage loans, ultimately leading to more informed decision-making.