Understanding the Fine Print: The Need for Effective Testing of Mandatory Mortgage Loan Disclosures

摘要: Prior research indicates that mandatory disclaimers increase consumer confusion and lead to inferior decisions. The authors examine the implications of these findings in context disclosures required by federal law for mortgage loan transactions. Research suggests consumers can be confused when too much information is presented or disclosure complex but falls short concluding all literature lacks conclusive evidence effects on decisions outcomes, such as choice performance, examining role light other social, contextual, informational influences scarce. Longitudinal, experimental controls factors necessary decision quality. Better-designed this area could significant improvements public policy protection result a more efficient allocation resources.