Home » Bangor » Consumers Win Big With ‘Know Before You Owe’ Rule

Consumers Win Big With ‘Know Before You Owe’ Rule

Since the 2015 implementation of the Consumer Financial Protection Bureau’s ‘Know Before You Owe’ mortgage initiative, over challenges in gaining access to the mortgage “closing disclosure” form, or CD. The CD is delivered to homebuyers in advance of their closing and contains important financial information related to their purchase.  Unfortunately, many lenders have chosen to withhold this document from real estate agents since Know Before You Owe went into effect, despite a longstanding tradition of sharing similar information.
The Consumer Finance Protection Bureau announced that it is usual, accepted and appropriate for creditors and settlement agents to provide a closing disclosure to consumers, sellers and their real estate brokers or other agents.
The National Association of Realtors® believes this announcement marks significant progress for consumers, as well as for its members. Giving Realtors® access to the CD would strengthen consumers’ understanding of their mortgage and home purchase by helping agents continue to provide expert advice to their clients.
Tom Salomone, NAR President said, “Realtors® have reported challenges gaining access to the Closing Disclosure… despite a long history of access to the substantively similar HUD-1 that is replaced. The CFPB acknowledged that concern by making it clear that it is appropriate and accepted for creditors and settlement agents to share the CD with consumers, sellers and their real estate agents.”

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