New Mortgage Loan Disclosures from the Consumer Finance Protection Bureau
The best way to fight a foreclosure is to stop one from happening in the first place. While many foreclosures are the result of unexpected financial hardships, far too many are caused by homeowners not understanding the terms of their mortgage loans. The mountains of paperwork that come from a real estate closing doesn’t help either. As the saying goes: hire a lawyer, kill a tree.
The Consumer Financial Protection Bureau’s (“CFPB”) new “Know Before You Owe” mortgage loan disclosures are intended to make this process easier. This initiative combines several, existing disclosures under federal law into new forms. The goal is to make it easier for consumers to compare loans and understand the financial implications of their decisions. With the foreclosure crisis far from over, the CFPB’s initiative is a step in the right direction.