The Consumer Financial Protection Bureau is seeking to overhaul the borrowing process for homeowners. According to the New York Times, the agency, established last year, wants to make the mortgage application process more comprehensible to borrowers.
The goal: To give consumers a “good faith estimate” of a loan’s actual costs, and to limit the amount of closing paperwork to a single disclosure form, stating the interest rate, how that rate could change over the course of the loan and how much cash is needed at closing. The overhaul would also require mortgage servicers to simplify all its information regarding services and options for buyers under foreclosure. [more]