A proposal by the Consumer Financial Protection Bureau to streamline disclosures of mortgage costs promises to end years of legal skirmishes over whether to categorize services as closing or financing costs. The proposal also reflects a broader effort to improve how loan terms are presented to borrowers.

But lenders and other industry officials, who support the idea of minimizing the threat of lawsuits tied to the Truth in Lending Act, are opposed to the CFPB proposal's reliance on an overhaul of the annual percentage rate.

"We're in favor of simplification, because we think that will help decrease compliance violations," said Richard J. Andreano, Jr., who leads Ballard Spahr's mortgage banking practice. "At the same time that the CFPB is pushing for an all-in consumer APR, they're acknowledging that it's not very useful."