Bank of America Home Loans has expanded the use of a voluntary one-page disclosure beyond just first mortgage transactions.
The Calabasas, Calif.-based mortgage unit announced today that its “clarity commitment” was expanded for use with home-equity loans and home-equity lines-of-credit with terms greater than 36 months.
So far, it has been provided to 730,000 first-mortgage borrowers.
The one-page disclosure was first announced by the Bank of America Corp. subsidiary in April for use on purchase and refinance first-mortgage transactions. It was subsequently implemented on some of its modified first mortgages and reverse mortgages.
BoA began using the disclosure for home-equity products on Oct. 25.
The disclosure, provided at the point of sale, summarizes key loan turns in simplified language for easy borrower comprehension. It is used for all origination channels and given to borrowers with all re-disclosures.
“This document lets borrowers review their loan details in plain language so they are confident they have chosen a loan that is right for them,” today’s statement said. “When first introduced to the public in April, Bank of America’s Clarity Commitment was held up as a model for the lending industry by industry associations and national media.”
