New federal rules under the Dodd-Frank Act will integrate existing bank initiated home loan closing disclosures with new rules intended to improve consumers understanding of the mortgage process and aid in comparison shopping and help prevent surprises at the closing table. This new initiative is known as “Know Before You Owe.”
Richard Cordray, Director of the Consumer Financial Protection Bureau said, “ It is time consumers have more power in the mortgage process, and our new forms and online tools will help make that a reality.”
The Bureau’s new online tools (www.consumerfinance.gov/owning-a-home) provide the public a set of tools to help consumers have a better understanding of the mortgage process. It offers a guide to the new mortgage closing forms, a closing fact sheet, a disclosure timeline, and educational videos to assist home buyers.
Realtors nationwide have worked to educate themselves on rule changes related to “Know Before You Owe” so they can continue providing expert advice to clients.