New Senate bill seeks better mortgage disclosure

WASHINGTON (MarketWatch) — Understanding a mortgage’s terms and conditions would become easier under a bill authored by Sen. Charles Schumer. The measure, introduced Thursday by Schumer, would require a one-page disclosure document to accompany a mortgage transaction.

It would display loan information such as monthly loan payments and interest rates before and after “resets.” By introducing the bill, Schumer, a Democrat from New York, said he is seeking to help out borrowers in the subprime and other markets. “All too often, mortgage brokers intimidate and befuddle borrowers with pages and pages of fine print that buries the true nature of the loan and how much income it will demand,” Schumer said in a statement.

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