The next face of finance DAN MUNZ CONSUMER FINANCIAL PROTECTION BUREAU

OCTOBER 2013

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.

@dan_munz

@CFPB

A bit of background

“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

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

DISCLAIMER

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

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

JULY 2010

JULY 2011

JULY 2012

(Re-)designing

disclosure

TRUTH IN LENDING DISCLOSURE

GOOD FAITH ESTIMATE

TRUTH IN LENDING DISCLOSURE

GOOD FAITH ESTIMATE

Too late!

Work for the government

Work for the government

MMOMDD

(Massively Multiplayer Online Mortgage Disclosure Design)

CFPB LOAN ESTIMATE

Lessons learned

CFPB TILA-RESPA Mortgage Disclosure Integration Project

Lesson 1:

Building a shared story invites new input from

different perspectives.

WWIC

“Why wasn’t I consulted?”

’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

just getting over recent changes +

money on the line +

the Internet =

WWIC

Ken Perry BROKERKNOWLEDGE.COM

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

Lesson 2:

A truly open process creates the space

to design successfully.

“THEY’RE LISTENING

TO US!”

“LET’S DO IT AGAIN!”

ASK FOR INPUT (AND MEAN IT)

BUILD PROCESS

REFINE BASED ON INPUT

SELF-SUSTAINING COLLABORATION

Lesson 3:

Designing in the open can be habit-forming.

Re-designing student debt

consumerfinance.gov/jobs

Thanks! daniel.munz@cfpb.gov @dan_munz