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Know Before You Owe

Know Before You Owe - The Beacon


By: Michael

Know Before You Owe


The Consumer Financial Protection Bureau (CFPB) on October 3rd, 2015 implemented a new rule replacing four mortgage disclosure forms with two new ones, the Loan Estimate and the Closing Disclosure. Your BBB works daily to educate consumers and businesses on both your rights and responsibilities. In the past, clients thought they were approved for what they were told was a 30 year fixed rate, only to find out a day or two before closing, that the underwriter was not able to make that work. The changes are meant to help consumers, but most consumers won’t see much difference. Most changes will be on the banks’ side.

The recession in 2008 led to many homeowners complaining about the mortgage disclosure process. Home closings will increase from 30 days, to between 45 and 60 days.

The CFPB’s “Know before You Owe” Web Page states 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. To help home buyers make more informed decisions, the CFPB has created forms including a Sample Loan Estimate Sample Closing Disclosure and a Home Loan Toolkit (PDF).

For those in banking and finance, real estate, or with curious minds, visit the Regulatory Implementation page and Real Estate Professional’s Guide.

For more information you can trust, visit

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Michael is our Business Information Specialist and will be writing at least one article per week for the consumer education blog. He works with accredited businesses to ensure we maintain current contact information and licensing. He is usually first to answer the phone; so odds are good you will be speaking with him when calling our office.