Consumer Financial Protection Bureau (CFPB) has released the third draft of a new Settlement Statement form that combines TIL disclosures and the HUD-1 to explain final loan terms and closing costs to consumers.

There are two drafts of the new, combined form, Butternut and Hemlock. CFPB is again asking for your input on how these final-stage closing forms work with the draft application form which will replace the GFE. The forms are intended to help consumers better understand the differences between their estimated and final loan terms and settlement costs.

They need to hear from consumers, lenders, and settlement agents. In other words: they need to hear from the people who have to use these disclosures.

The Dodd-Frank Act requires them to integrate the two disclosures you currently receive when you close on a mortgage loan: the HUD-1 Settlement Statement and final Truth-In-Lending disclosure. Their goal is to make this one combined form that is easier for both consumers and industry to understand and use. Keep in mind that this is the final disclosure consumers receive either shortly before or at closing. It provides borrowers with the important information like the loan terms, closing costs, and requirements for the loan.