Know Before You Owe

Know Before You Owe

The Consumer Financial Protection Bureau (CFPB) and changes the Mortgage Disclosure Rules

• The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) established the Consumer Financial Protection Bureau (CFPB).  
• The Bureau was created to protect consumers and to make financial decisions easier to understand.  Their actions were designed to help consumers shop and compare options. 
• The Know Before You Owe mortgage disclosure rule replaces four disclosure forms with two new ones, the Loan Estimate and the Closing Disclosure. The new forms are easier to understand and easier to use. The rule also requires that you get three business days to review your Closing Disclosure and ask questions before you close on a mortgage 

Click the following link for more information about the Know Before You Owe Rule:

• https://www.consumerfinance.gov/know-before-you-owe/

Click here to view an example of the Loan Estimate 

Click here to view an example of the Closing Disclosure.  

For additional details about the TILA-RESPA Integrated Disclosure Rule click here

How will these changes impact you?

1. Speak to a preferred lender in the early planning stages of your move and home buying process.
2. Get a verified pre-approval as early as possible.  This will allow your lender to approve your loan quickly and assure an on-time closing once you find a home.
3. Changes to your loan product or loan amount within 10 days of closing may cause delays.
4. Supply any required documentation to the lender in a timely fashion.  Keep in mind that federal regulations require lenders to obtain certain documentation in order to issue a loan approval.