• Know Before You Owe

New mortgage disclosure documentation required by law

Taking out a mortgage is one of the biggest financial decisions you will ever make. On October 3, 2015 the Consumer Financial Protection Bureau implemented a new rule called ‘The Know Before You Owe’ mortgage disclosure rule.

This rule replaces four disclosure forms with two new ones – the Loan Estimate and the Closing Disclosure. The new forms are easier to understand and easier to use. The rule also requires three business days to review your Closing Disclosure and ask questions before you close on a mortgage. Please consider the following important information about the mortgage process:

  • Shortly after applying for a mortgage loan, a packet of early documents will be provided. These documents will contain the new disclosure called the Loan Estimate. The Loan Estimate provides a summary of the key loan terms and estimated loan and closing costs.
  • Once the loan is approved and “ready to close,” the Closing Disclosure will be provided. This disclosure must be provided three days prior to the loan closing date. This gives you time to review the final costs and loan terms prior to closing the loan.
  • During the three days between receiving the Closing Disclosure and the closing date:
    • If loan details change within that three-day period, a new disclosure could be required, and the three-day period could start again.
    • Please note that neither you nor First Tennessee can waive the three-day waiting period except for a “bona fide personal financial emergency.”

The new disclosure changes will provide the information needed to help you feel confident throughout the mortgage process. We simply wanted to make you aware of these disclosure requirements and the potential impact it may have on your mortgage loan.


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Federal Deposit Insurance Corporation Banking products and services are provided by First Tennessee Bank National Association. Member FDIC. Logo_Equal_Housing_LG Equal Housing Lender.