Using eye-tracking technology, three professors found that consumers understood mortgage-disclosure forms updated in 2010 better than those from 2008 if given enough time to read them. Consumers are less likely to recall important details such as interest rates if distracted, the study shows. Researchers are calling for the government to require borrower financial literacy tests. Those who fail them would get mortgage counseling, and the Consumer Financial Protection Bureau should expand the role of counselors to include advice on loans, the researchers advise.
Published in Brief: