Mortgage paperwork is being simplified

The Consumer Financial Protection Bureau is drafting new mortgage disclosure forms in an attempt to simplify the process, CNN reports. The new one-page form is the bureau's way of making it easier for people to compare and shop for mortgages when they are considering moving into a new home.

The new form will combine the two disclosures that are currently mandated by the federal government, the federal Truth in Lending Act mortgage disclosure, and the Real Estate Settlement Procedures Act Good Faith Estimate, according to the news outlet. This will take the paperwork from five pages down to one.

"[This form] is a clear, simple form so consumers can get better answers to two basic questions: Can I afford this mortgage, and can I get a better deal somewhere else," Elizabeth Warren, assistant to the president and special advisor to the secretary of the Treasury, told the media outlet.

There are currently two prototypes being tested on the Bureau's website. They both contain the same information, but are designed differently. The goal of the new form is to allow potential homebuyers the ability to see the most important information first, CNN reports. 

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