Will I receive the new Know Before You Owe disclosures when I shop for a mortgage?

Answer:

The CFPB’s Know Before You Owe mortgage initiative empowers consumers with the information they need to make informed mortgage choices. Under this initiative, the CFPB has consolidated the mortgage disclosures required under federal law in two new forms.

If you are applying for a mortgage on or after October 3, 2015, you will receive the new forms in most cases. The new disclosure forms are called the Loan Estimate and the Closing Disclosure.

  • The Loan Estimate is provided early in the mortgage process, within three business days of your application. 
  • The Closing Disclosure is provided at the end of the process, and you must receive it at least three business days before closing.

These new forms replace the old federal mortgage disclosures, known as the Good Faith Estimate, the HUD-1 Settlement Statement, and the Truth in Lending disclosures.

TIP: The CFPB has created interactive tools and resources to help you shop for a mortgage, review your Loan Estimate, and review your Closing Disclosure. We also have a downloadable step-by-step guide.

If you applied for a mortgage before October 3, 2015, you will receive the old forms even if you close after October 3, 2015.

Certain kinds of mortgages are not covered by the new forms. You will not receive a Loan Estimate or Closing Disclosure if you are shopping for:

  • A reverse mortgage 
  • A home equity line of credit (HELOC)
  • A manufactured housing or mobile home loan not secured by real estate
  • A subordinate loan through certain types of homebuyer assistance programs

For these kinds of loans, you should receive Truth-in-Lending disclosures. If you are shopping for a reverse mortgage, you will also receive a Good Faith Estimate (GFE) and a HUD-1 Settlement Statement.

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