Contracts

Contracts for loans, insurance, etc. will be required to have a simple coversheet that clearly outlines the major terms so that they can be easily understood.  For example, a loan should show the following items:

Principle                                                                            $200,000

Interest rate                                                                             6%

Term                                                                                       240 months

Monthly payment                                                            $1,432.86

Total payments                                                                 $343,886

All origination fees                                                            $   2,000

Any other fees charged for late payment, etc.          Late fee of $35.00 or 1% of the payment

Collateral securing loan                                                Real estate at xxxxxxxx road

Default provisions

 

   Of course, all contracts would need fine print but nothing in the “fine print” could be detrimental to the borrower. It might even be possible to standardize the “fine print” into law.  Then if any modifications needed to be made they could be clearly documented on a separate page.  Any agreement that had significant modifications would be suspect.