1) The document discusses the redesign of financial disclosure forms by the Consumer Financial Protection Bureau to better inform consumers and protect them from risky and complex financial products. 2) It notes that previous mortgage and loan disclosure forms did not adequately disclose the risks of products like subprime mortgages. 3) The CFPB used an open design process, soliciting input from stakeholders at every stage, to create new simpler Loan Estimate and Closing Disclosure forms that build consumer understanding and a more transparent mortgage market.

1. OCTOBER 2013
The next face of finance
DAN MUNZ
CONSUMER FINANCIAL PROTECTION BUREAU
Note: This document was used in support of a live discussion.
As such, it does not necessarily express the entirety of that
discussion nor the relative emphasis of topics therein.

2. @dan_munz
@CFPB

3. A bit of background

4. “It is impossible to buy a toaster
that has a one-in-five chance of
bursting into flames and burning
down your house. But it is
possible to refinance an existing
home with a mortgage that has the
same one-in-five chance of putting
the family out on the street–and
the mortgage won’t even carry a
disclosure of that fact to the
homeowner.”
Unsafe at Any Rate
Summer 2007

5. DISCLAIMER
This is much more
complicated than I’m
making it out to be.

7. http://upload.wikimedia.org/wikipedia/commons/d/d5/Subprime_Mortgage_Offer.jpeg

10. http://news.consumerreports.org/a/6a00d83451e0d569e20120a66bf125970c-800wi

11. JULY 2010

12. JULY 2011

13. JULY 2012

15. (Re-)designing
disclosure

17. GOOD FAITH ESTIMATE
TRUTH IN LENDING DISCLOSURE

19. GOOD FAITH ESTIMATE
TRUTH IN LENDING DISCLOSURE

22. Work for the
government
Work for the
government
Too
late!

26. MMOMDD
(Massively Multiplayer Online
Mortgage Disclosure Design)

29. CFPB LOAN ESTIMATE

30. Lessons learned

34. CFPB
TILA-RESPA
Mortgage
Disclosure
Integration
Project

45. Lesson 1:
Building a shared story
invites new input from
different perspectives.

49. WWIC
“Why wasn’t I consulted?”

51. ’Why wasn't I consulted’ is the
fundamental question of the web.
Humans have a fundamental need to be
consulted, engaged, to exercise their
knowledge (and thus power), and no other
medium that came before has been able to
tap into that as effectively.
PAUL FORD, JANUARY 2011

54. just getting over recent changes
+
money on the line
+
the Internet
=
WWIC

64. Ken Perry
BROKERKNOWLEDGE.COM

65. I need you to go on there and
comment about what you like and
dislike about this form.
If you guys don’t comment, then
when it does get released, you
have no right to complain.
KEN PERRY, JUNE 2011

66. Lesson 2:
A truly open process
creates the space
to design successfully.

76. SELF-SUSTAINING COLLABORATION
ASK FOR INPUT
(AND MEAN IT)
BUILD
PROCESS
REFINE
BASED ON
INPUT
“THEY’RE
LISTENING
TO US!”
“LET’S
DO IT
AGAIN!”

77. Lesson 3:
Designing in the open can
be habit-forming.

78. Re-designing
student debt

93. consumerfinance.gov/jobs

94. Thanks!
daniel.munz@cfpb.gov
@dan_munz