Mandatory use ofa simple mortgage disclosure formwould make borrowers better able to protect themselves by understanding what the mortgage really means to them, andpromote a more efficient mortgage finance system.

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

Testimonyregarding thesubprime mortgage crisis to the U.S. House of Representatives.

The American Enterprise Debates delve deeper into the core issues at the heart of our societal fabric. The series aims to challenge conventional wisdom and inform policy in a sequence of one-hour debates that center on simple yet provocative questions.

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.

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

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,...

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.