CFPB's Know Before You Owe initiative

The CFPB's Know Before You Owe initiative aims to make understanding mortgage costs easier for consumers. It requires lenders to provide clear, standardized disclosures early in the home loan process—specifically the Loan Estimate and Closing Disclosure—so borrowers can compare options and understand total costs, interest rates, and fees. This transparency helps potential homeowners make informed decisions, avoid surprises at closing, and choose the best loan for their financial situation. The goal is to improve confidence and fairness in the mortgage shopping and closing process through straightforward, consistent information.