On February 27, the CFPB announced it is in the final stages of reviewing an application for alternative mortgage disclosures for construction loans submitted by a trade group representing small U.S. banks. The applicant maintains that it is not uncommon for first-time homebuyers in rural communities to build their home instead of purchasing an existing home due to the scarcity of “existing affordable ‘starter’ homes.” The applicant seeks to adjust existing mortgage disclosures to facilitate the offering of loans that finance both the construction phase and the permanent purchase of a home. According to the applicant, a consumer’s understanding of construction loans would be improved if disclosures are more specifically tailored to these types of transactions. The Bureau stated that should it approve this “template” application, individual lenders will be able to apply for enrollment in an in-market testing pilot. However, the Bureau noted that, as indicated in its Policy to Encourage Trial Disclosure Programs (covered by InfoBytes here), the mere approval of a template neither permits a lender to unilaterally conduct a trial disclosure program without further approval by the CFPB, nor does it “bind the CFPB to grant individual applications.”