The hearings explored research on consumer behavior in shopping for mortgage loans and included discussions about the challenges in designing disclosures to more effectively communicate loan terms and risks to consumers. We will consider this information in developing plans and recommendations for revising the Truth in Lending rules, which require all creditors to provide consumers with disclosures about loan terms.
Many financial products are very sophisticated credit transactions, and the disclosures describing them are also complex and highly technical; which can be difficult for some consumers to understand. To address this issue, the Federal Reserve is focusing in a more rigorous way on determining the effectiveness of disclosures.