Consumers, Cast Your Vote

The Consumer Financial Protection Bureau has launched the first project in its "Know Before You Owe" initiative with the release of proposed mortgage disclosures. While the CFPB did its homework in designing these forms, including getting feedback from a wide variety of sources, it is taking field-testing to a new level by asking American consumers to review two proposed forms. Consumers can then vote for the form that they think best conveys the key information needed to understand a home mortgage loan. The choices, named "Azalea" and "Camellia" for the fictional banks on the sample disclosures, are available here. (Simply click to view them as a PDF and then vote for your favorite.)

The first page of the forms are the same. There, I really like how attention is called to the balloon payment, and the way a section is entitled "Comparison: Use this information to compare this loan with others." The comparison part is especially important given research showing that many consumers do not in fact shop for their mortgage loan. The Azalea form goes on to highlight kinds of closing costs, such as inspections, that a borrower can shop for. The main difference in the forms is on page 2, where the the Camellia form provides much more detail on closing costs.

Now admittedly, we like to think that Credit Slips readers are wee bit more interested in borrowing than the typical American, but that shouldn't stop you from reviewing the forms, casting your vote, and passing along the link to all your family and friends who always want advice on their consumer debt issues from you. And feel free to discuss your vote and your preference in the comments. It'll be interesting to see the preferences of the Credit Slips readers--and to see if the CFPB comes to the same conclusion.