The Consumer Financial Protection Bureau (CFPB) today
proposed updates to its Know Before You Owe mortgage disclosure rule.
The proposed amendments are intended to formalize guidance in the rule, and
provide greater clarity and certainty.
An important part of the CFPB’s mandate from Congress is to make rules governing consumer finance markets more effective and to create new rules when warranted. Today, we’re posting a semiannual update of our rulemaking agenda as part of the federal government’s Unified Agenda of Regulatory and Deregulatory Actions.
Today the CFPB is updating the Home Mortgage Disclosure Act (HMDA) requirements with a new rule that will shine more light on lending practices in America’s largest consumer financial market, the mortgage market.
Today, the process of getting a mortgage is easier to understand because the Know Before You Owe mortgage disclosure rule is now in effect. We’ve put together some frequently asked questions about the new rule and how it will make the mortgage process easier for you.
The Closing Disclosure is a five-page form that helps you understand the key features, costs, and risks of your mortgage loan. These changes make it easier to understand the terms of your mortgage before signing on the dotted line.
You have the right to compare offers and understand the terms before you sign on the dotted line. After four years of work, these new forms and tools will help you shop for the best deal and avoid costly surprises when you sign on the dotted line.