Understanding the terms of your mortgage loan is about to get easier. The Consumer Financial Protection Bureau has just announced that it is issuing new mortgage disclosure forms that will require lenders to clearly spell out the terms of the mortgage loans they offer. Part of the financial watchdog’s signature “know before you owe” program, the new mortgage disclosure forms are geared to make it easier for Fairfax County VA home buyers to understand and compare mortgage loans.
“Taking out a mortgage is one of the biggest financial decisions a consumer will ever make. Our new ‘Know Before You Owe’ mortgage forms improve consumer understanding, aid comparison shopping, and help prevent closing table surprises for consumers,” Consumer Financial Protection Bureau Director Richard Cordray said in a press announcement posted on the bureau’s website. Cordray called the new requirements “an important step toward the consumer having greater control over the mortgage loan process.”
Not only will new mortgage disclosure forms spell out loan terms “in Plain English;” but mortgage lenders will be required to follow a standardized format in presenting loan terms which will ensure that home buyers shopping for a mortgage loan are comparing “apples to apples.” Fairfax County Virginia real estate agents expect lenders to start using the forms, which will be available in both English and Spanish, well in advance of the August 1, 2015 deadline.
Lenders will be required to provide prospective home buyers with the new forms when they first apply for a mortgage and again three days before their closing date. Click here for details about the new mortgage forms.
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