The stress of shopping for a mortgage will be reduced for those applying for most mortgages beginning October 3, as the new CFPB mortgage rule and forms take effect. These changes are a part of the CFPB Know Before You Owe mortgage initiative and are designed to ease the process of buying a home, help you save money, and ensure you know before you owe.
Learn more about Know Before You Owe: consumerfinance.gov/know-before-you-owe
The Know Before You Owe mortgage disclosure rule makes it easier to understand your mortgage paperwork by:
- Streamlining four overlapping disclosure forms into just two forms, the Loan Estimate and the Closing Disclosure
- Standardizing the information to obtain Loan Estimates
- Allowing you more time to review the terms of your mortgage, as shown on the new Closing Disclosure, which helps you understand all terms and obligations before closing.
Check out how these new Know Before You Owe measures will better serve consumers and lenders.