When you make one of the biggest purchases of your life, wouldn’t it be nice if the forms you signed were simple, clear, and transparent? President Obama, the Consumer Financial Protection Bureau, and we think so.
The Consumer Financial Protection Bureau’s (CFPB) “Know Before You Owe” project is working to accomplish this goal. They are combining several of the disclosures you receive when you apply for and close on a home loan into two , easy-to-use forms. CFPB is collecting input on these forms from consumers and industry people online and in person in usability tests across the country.
On Wednesday, February 1, 2012, President Obama outlined a “Homeowners Bill of Rights,” designed to help protect borrowers. One aspect of that plan includes a “new, simple, clear form for new buyers of a home.” Obama said:
So this is what a mortgage form should look like. This is it. Now that our new consumer watchdog agency is finally running at full steam, now that Richard Cordray is in as the Director of the CFPB, they’re moving forward on important protections like this new, shorter mortgage form. Simple, not complicated. Informative, not confusing. Terms are clear. Fees are transparent…
I prefer actions that are taken to make things simpler and easier to understand for consumers so that they can get the best deal possible – especially on the single biggest investment that most people will ever make.
We too prefer positive actions that benefit and protect consumers.