Forms change for mortgage
WASHINGTON — The government proposed rules Monday to help Americans understand the costs and risks of getting a mortgage. The Consumer Financial Protection Bureau unveiled redesigned forms that mortgage borrowers would get after applying for a loan but before closing on the house. The forms would be available three days before closing. “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,” said Richard Cordray, the bureau's director. The proposal aims to prevent costly surprises and help people understand a loan's true cost. It also increases protections for those who take out higher-cost mortgages. Most of the changes were required by the 2010 financial overhaul law. That law created the agency to protect Americans from unaffordable mortgage loans or those with hidden fees. The rules would apply to most home mortgages but not home equity lines of credit, so-called reverse mortgages, mortgages on mobile homes and other specialized loans.