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The Pros and Cons for Borrowers on More Transparent Mortgage Disclosure Forms

Armen Hareyan's picture
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Mortgage disclosure forms will be changed and new forms will be implemented this month. New government rules, which require mortgage loan lenders to provide borrowers more detailed information about their mortgages will go into effect this month. Home loan lenders are now required to explain mortgage loan terms to home buyers in unprecedented detail.

I asked Buzz Mackintosh, a real estate agent from Mackintosh Inc, Realtors to provide his opinion on this change and how these new mortgage disclosure regulations may effect the industry on all sides.

Here is what Mackintosh said in a letter to

My feeling on this subject is: The Federal Government always has "good intentions" how ever everything they put their fingers on has "unintended consequences".

Back in the late 70's they initiated legislation and rules to loosen the mortgage qualifying process which ultimately brought us the sub prime mortgages which then burst the housing bubble in 2005 -2006. Now they want to solve this crisis with the Dodd / Frank legislation by over regulating the mortgage process and throwing cold water on the housing market and mortgage process. I just finished a closing with a Buyer who said she felt like "they asked her for everything but a urine sample! "; before the loan was approved .

On the bright side ; they say the numbers involved in the process will be easier to comprehend. Only time will tell as everyone gets use to the new process in place.

Question: But despite strictness, do you think this will prevent another mortgage crisis for a long time? Or what does it to do prevent one?

Mackintosh: My feeling is the Government is doing all they can to suppress progress with over regulation, therefore it will be very hard for the younger generations coming up to find jobs. The real estate industry is the main cog in the economy which feeds so many other job sectors.

There should be a middle road on the regulations, they have just gone from one extreme to the other in their crisis management. The result is many Millennials tend to want to rent instead of owning a home and building wealth like their parents generation.

Also see: The CFPB, RESPA, MSAs, Marketing, and You


Submitted by Trent Dalrymple (not verified) on
The TRID changes have actually been an improvement, a simple to read single disclosure (Loan Disclosure - LE) to replace 2 disclosures (Good Faith Estimate and Truth in Lending disclosures) and another disclosure (Closing Disclosure) to be presented to the borrower(s) at least 3 days before the borrower(s) show up for the closing. It hasn't caused any delays in my closings and my brokers and their clients are happy.

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