New online tools explain ‘Know Before You Owe’ initiative

​​​WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) and the National Association of Realtors​ (NAR) have rolled out online tools to help consumers better understand "Know Before You Owe," an initiative that requires easier-to-use mortgage disclosure forms that clearly lay out the terms of a mortgage for a homebuyer.

As part of the initiative, the Truth in Lending Act—Real Estate Settlement and Procedures Act Integrated Disclosure rule (TRID) will integrate existing closing disclosures with new requirements from the Dodd-Frank Act. 

The new tools are intended to improve consumers’ understanding of the mortgage process, assist in comparison shopping and help prevent surprises at closing. The kit offers a guide to the new mortgage closing forms, a closing factsheet, a disclosure timeline and educational videos.

Know Before You Owe goes into effect October 3.