CFPB Finalizes its “Know Before You Owe” Campaign
By: Nicole Gates
The Consumer Financial Protection Bureau announced last week that lenders will be required to start utilizing the finalized “Know Before You Owe” loan disclosure documents in an effort to more efficiently lay out mortgage terms for homebuyers. In the past, the law required lenders to deliver two different disclosures to borrowers within three business days of receiving their applications. However, new guidance from the CFPB now limits how much a final mortgage deal can vary from the original loan estimate.
“The new documentation is a happy medium, with a little bit of the old way and a little bit of the new way,” Ben Cohen stated in Housing Wire’s article. “It helps avoid a lot of the confusion that borrowers have had by consolidating the forms and information.”
To see the full article, visit Housing Wire’s webpage here.
What do you think – will this help homebuyers avoid confusion during the mortgage process?