The Consumer Financial Protection Bureau issued a final rule Nov. 20 that requires the use of new, simplified mortgage disclosure forms available in English and Spanish that detail the terms of a mortgage to homebuyers.

"The new 'Know Before You Owe' mortgage forms will replace the existing federal disclosures and help consumers understand their options, choose the deal that's best for them, and avoid costly surprises at the closing table," said the CFPB in a press release.

For the past 30 years, the CFPB said, federal law has required lenders to deliver two different forms to homebuyers within three business days after receiving a mortgage application, which often contained disclosures that overlapped. Two more forms are delivered at the closing stage as well. Recognizing the need to streamline the process, the Dodd-Frank Act transferred authority over the existing forms to the CFPB. After two years of extensive research and testing, the CFPB said it has created two forms that fulfill the Dodd-Frank law's intention of creating forms that are easier for consumers to understand.