By Catherine Curan
October 10, 2015 | 5:45pm
When you make the biggest purchase of your life, it’s important to understand exactly how much you’re paying.
During the housing bubble, that wasn’t always the case for homebuyers. After the foreclosure crisis hit, the 2010 Dodd-Frank Act created a Consumer Financial Protection Bureau to make sure consumers get a fair shake.
The agency spent four years working on new Loan Estimate and Closing Disclosure forms — getting input from consumers and the mortgage industry — and they’re finally here. As of Oct. 3, these kitchen-table friendly forms are the rule for most new residential mortgages.
Key changes include:
The new forms replace four older, more complex disclosure documents.
The mortgage industry has complained about the cost of complying with the changes, but consumer advocates said they are long overdue.
“It’s going to be a lot harder for bad guys to engage in bait-and-switch tactics, which was a big problem before,” said Andrew Pizor, staff attorney at the National Consumer Law Center.