Professor Jeff Sovern on Mortgage Disclosures
Law professor Jeff Sovern, a coordinator of the Consumer Law and Policy Blog, and a member of the Fair Contracts Advisory Board, has an excellent piece in the New York Times today titled “Help for the Perplexed Home Buyer.” He notes that the Consumer Financial Protection Bureau’s proposed new rules to clarify housing loan disclosure forms are a big help, but that most consumers don’t read these forms. Sovern contends that the simplification of the forms is not enough and that consumers “who cannot or will not understand mortgage disclosures should be required to hire mortgage counselors.”
Comments are due September 7 or November 6, depending on the section of the proposed rules the comments address. Fair Contracts submitted two rounds of comments on these forms last year and suggests everyone comment on the CFPB’s attempt to make the fine print disclosures in mortgage forms more consumer friendly.