Question

Which of the following is one of the stated reasons for implementing the integrated mortgage disclosure forms?

a: To permit lenders to collect fees earlier
b: To lower borrowers' cost
c: To use clear language that borrowers can understand
d: To reduce identity theft

Answer 1

The reason for implementing integrated mortgage disclosure forms is to use clear language so borrowers can understand the loan terms and make informed decisions. The correct option is (c).

Step-by-step explanation:

One of the stated reasons for implementing the integrated mortgage disclosure forms is to use clear language that borrowers can understand. The goal is to ensure that borrowers have a better understanding of the loan process, and clear disclosures of terms and conditions, to make informed decisions.

This was a response to the financial crisis of 2008-2009, which was partly attributed to complex and opaque financial and mortgage instruments. Ensuring clarity in mortgage documentation is thus an integral part of consumer protection and financial reform efforts.