Pick the Design for the New Mortgage Disclosure Form

May 18, 2011 No Comments »

mortgage loan

Want to take an active role in the mortgage recovery?

Well, the Consumer Financial Protection Bureau is asking for your opinion on their new mortgage disclosures forms, which detail everything from monthly mortgage payment to loan origination fee to how expensive your adjustable-rate mortgage can be.

Currently, anyone who applies for a mortgage ends up with two main disclosures, the Good Faith Estimate and the Truth in Lending form.

Both tend to be pretty confusing for consumers, so the CFPB is looking to clean that up ASAP.

They’ve created two versions of the new form, which you can see here, and subsequently vote for.

When comparing the forms, focus on what information mortgage lenders and mortgage brokers should share with consumers when they apply for a mortgage to make the process as transparent and painless as possible.

I personally prefer option B – it reminds me of the new disclosure forms seen with credit card applications, which are certainly much more straightforward.

Either way, both forms make it a lot more clear what you’ll be paying and why when applying for a mortgage.

That’s good news, and could help us avoid another full-blown mortgage crisis in the future.

Tip: How to get a mortgage.

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