The CFPB issued a rule on Wednesday that requires the use of new, simplified mortgage disclosure forms available in English and Spanish that detail the terms of a mortgage to homebuyers.
"The new 'Know Before You Owe' mortgage forms will replace the existing federal disclosures and help consumers understand their options, choose the deal that's best for them, and avoid costly surprises at the closing table," said a CFPB press release.
For the past 30 years, the CFPB said, federal law has required lenders to deliver two different forms to homebuyers within three business days after receiving a mortgage application, which often contained disclosures that overlapped.
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