Mortgage Forms to get More Consumer-Friendly

Borrowers may soon have an easier time sorting out
all of those key details and expenses associated with their mortgage as well as
more easily compare loan terms when trying to shop around for a mortgage that
works best for them.

The Consumer
Financial Protection Bureau recently unveiled its “Know Before You Owe” project
and is seeking public feedback on two “consumer friendly” prototype mortgage
disclosure forms that will replace the current required disclosure forms by July
2012.

The prototype forms itemize key
costs associated with the mortgage, including total closing costs, monthly
payments, and projected monthly payments for future years. The forms also
provide more details about the mortgage’s terms than the current form does.

The bureau is running tests on the
prototype forms as well as seeking public comment. Review the sample forms and
provide feedback at
http://www.consumerfinance.gov/knowbeforeyouowe.

Source: “Mortgage Disclosures Getting Another
Revamp,”
Associated Press (May 18,
2011)

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