The rules that dictate what lenders must disclose to borrowers about their mortgage loans vary: The Federal Reserve and HUD each have regulations on disclosure that all lenders must observe, and states have their own regulations.
The current system works very well for prime mortgages, says law professor Kurt Eggert — but subprime mortgages are more complex, and the regulations are not always adequate for borrowers to understand how high their payments could be.
Robert Siegel talks with Eggert, who teaches at Chapman University.
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