Mandatory disclosure describes the rules and regulations regarding the type of information that must be made known to mortgage borrowers.

Lenders who fail to adhere to these laws can be penalized by the regulating authority.

Disclosure and transparency has been a huge focal point of government agencies ever since 2008 due to the sheer amount of borrowers who claim to be misled or deceived into signing up for home loans.

What consumers don’t realize is that there has been a flurry of regulations in place even before 2008. The most prominent being the truth in lending act.

But the problem has always been in enforcing them.

However, disclosure requirements have become more comprehensive these days with guidelines on APR, GFE, loan estimate, closing disclosure, etc.

With the rise of so many mandatory disclosure requirements that lenders must undertake, a different problems can arise… which is what’s happening today.

The modern problem now is that so much information is provided for a borrower to digest before taking up a loan, that in reality, few would actually have time to devour every piece of information regarding their home loans.

This is why certain documents detailing information are required to be delivered to the borrower a few days before certain milestone dates.

This is so that they have time to go through them meticulously if necessary.

But the truth is that most people only decide to sieve through them on closing day.

The moral of the story is that borrower are ultimately responsible for the debt in which they sign up for.

So make sure you read everything in these disclosure documents before signing up for anything.