On Monday the Consumer Finance Protection Bureau proposed fresh disclosure policies with in the mortgage industry in order to provide more transparency between the lender and the buyer.
Under new regulations home buyers , in regards to their home loan, would “receive a loan estimate that outlined the terms, including how much interest they would pay, how that might shift over the life of the loan and the highest loan amount that consumers could face” within three days of their initial application, according to The New York Times.
The proposed rules are designed to help home buyers avoid transaction fees that are could be linked to interest rates and the loan amount. Lenders would be governed to be forthcoming in possible risks in a loan.
The proposed policies are available for public comment until November 6th of this year, providing roughly 120 days for public review.
“When making what is likely the biggest purchase of their life, consumers should be looking at paperwork that clearly lays out the terms of the deal,” Richard Cordray, the director of the bureau, said in a statement.