A Consumer-facing Charge and Fee Guide has received “candidate recommendation” status, meaning it is now available for use, according to MISMO. The guide provides a standard set of expected fee names and descriptions for commonly used fees, to be included in loan estimate and closing disclosure forms.

“MISMO developed this guide to promote the uniform application of fee names and descriptions for the purpose of creating consistency across the industry and to facilitate efforts to comply with regulations,” MISMO President David Coleman said in a release. “These efficiencies ultimately reduce costs and save time for all parties involved.”

To be granted candidate recommendation status, the guide had to be thoroughly reviewed by a wide range of organizations and industry participants. The fees it refers to are those required to be listed on loan estimate and disclosure forms required by the Consumer Financial Protection Bureau under the integrated disclosures provisions for the Truth-in-Lending Act and RESPA, also known as TRID. This form replaces the HUD-1 Settlement Statement, the guide stated.

These forms were designed to provide information to help potential borrowers understand the key features, costs, and risks for the mortgage loan for which they are applying.

“This Consumer-facing Charge and Fee Naming Guide combines industry best practices with applicable TRID requirements to help lenders determine in which section each fee should be disclosed each fee,” the guide stated. “The guidance set forth here in no way supersedes the TRID requirements or a lender’s compliance division directives.”