This site uses cookies to improve your browsing experience, gather site analytics and activity, track shopping cart contents, and deliver relevant marketing information.
View our privacy policy and manage your settings here. By using our site you agree to these terms.

10.16 Model Disclosures

<< Title X Overview

10.16 Model Disclosures



10.16.   Model Disclosures.  The Bureau may issue rules to ensure that the features of a consumer financial product are fully, accurately, and effectively disclosed to consumers in a manner that permits consumers to understand the costs, benefits, and risks associated with the product or service. Any rule requiring disclosures may include a model form that may be used at the option of the Covered Person for provision of the required disclosures.  The model form will contain a clear and conspicuous disclosure that will use plain language comprehensible to consumers, contain a clear format and design, and succinctly explain the information that must be communicated to the user.  Any Covered Person that uses a model form will be in compliance with the Bureau's disclosure requirements.  The model form is to be validated through consumer testing.  In issuing disclosure rules, the Bureau is to consider evidence about consumer awareness of, understanding of, and responses to disclosures about consumer financial products.

The Bureau may permit a Covered Person to conduct a trial program for the purposes of providing trial disclosures to consumers.  A safe harbor will be available to any Covered Person that participates in an authorized trial. 

Not later than 1 year after the designated Bureau Transfer Date, the Bureau will propose for public comment rules and model disclosures that combine the disclosures required under the Truth in Lending Act and RESPA, into a single, integrated disclosure for mortgage loan transactions covered by those laws.[§1032]