Borrowers need to understand the obligations ofa mortgage. The HUD four-page disclosure form is a step in the right direction, butit does not contain certain essential elements.

Pollock proposes a form, "BasicFacts About Your Mortgage Loan,"be given to potential borrowers.

Alex J. Pollock explains the need for and the essential elements of a clear, one-page mortgage disclosure form.

The Federal Reserve's proposed mortgage disclosures correctly focus on presenting key information to borrowers, but the information presented should be more oriented around whether the borrower can afford the loan in question.

Media inquiries: Veronique Rodman202.862.4870 (vrodman@aei.org)

FOR IMMEDIATE RELEASE: June 13, 2007

More and more Americans are defaulting on their mortgages, and foreclosures rates are skyrocketing because of risky subprime loans. It appears that many troubled subprime borrowers had not understood the obligations they were undertaking. Yet,...

Borrowers should be better educated and better equipped when signing on a mortgage loan.

Alex Pollock examines the future of the current financial crisis as it relates to the housing industry.

A scholar explains his support of the Mortgage Disclosure Amendment Act of 2007.