A Challenge To My Readers, And To All Mortgage Borrowers – New Mortgage Disclosure Rules

This NYT Dealbook article reminded me of something I’ve been asking for for the past 4 years.  Specifically, this quote:

““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 agency, said in a statement.”

Now, dear readers, I have asked for this previously, and I’m asking for it again, since I never received any responses:

Please send me a copy of your mortgage, or any other mortgage which you’ve seen, which does NOT clearly lay out the terms of the deal.

I look forward to reading it…

I understand that closing costs/fees may have been muddled into other lines in some mortgages – I am interested mostly in adjustable rate mortgages which didn’t clearly lay out the terms of the interest rate adjustment, where I should feel sorry for the borrower who was “duped.”  I am skeptical that such mortgages actually exist, but please – send me one and I will be happy to be proven wrong.



note: here’s the CSFB’s page on the new regulations.   I’m all in favor of  “Interest rates, monthly payments, the loan amount, and closing costs are all right there on the first page.”  I’ve even argued for it in the past.   “Also, the first page explains how the interest rates, payments, and loan amount might change over the life of the loan, including the highest they can go. The forms also offer more information about taxes, insurance, and other property costs so consumers can better understand the total cost.”   Great – simplify it for us, like they’ve done with credit card bills.   But I’d like to twist Richard Cordray’s quote from above around a little bit, and reply:

“When making what is likely the biggest purchase of their life, consumers should take the time to read the actual document that they are signing and make sure that they understand it.”

I am reasonably certain that there does not exist a mortgage where the terms were not disclosed in the document, but that’s the point of this post:  I am waiting for you to send me these “confusing”  “tricky” or “unintelligible” mortgages that consumers couldn’t possibly have been expected to understand with respect to adjustable rates.

Here’s a link to the CSFB’s sample disclosure form for adjustable rate mortgages

and here’s a link for the sample form for fixed rate mortgages.

Just to be clear, I’m in favor of anything that makes things (like mortgages) easier to understand, and removes a borrower’s ability to claim ignorance and point blame if/when things go wrong.

On that note, in favor of making things simpler, here’s a link to the actual new proposed rule.  Yes – I couldn’t possibly make that up – it’s one thousand and ninety nine pages…  Viva Simplicity!!!



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