In California, for example, disclosures are required for the existence of lead in paint and the presence of mold, among other things.

The federal government requires Truth-in-Lending Act disclosure (TILA). Lenders must reveal the annual percentage rate (APR) and finance charge owed, as well as various other requirements.

However, required disclosures do not adequately protect the homebuyer. Lenders should also be required to:

• Include a table that clearly displays the expected loan payment schedule over the life of the loan.
• List and explain all fees associated with the loan.
• Explain features of the loan such as and explain the risk involved.

A problem with disclosures is that few people have either the inclination or the time to read them.

At a certain point, which has probably been reached in California, there are just too many documents and disclosures and they are meaningless unless the home buyer makes the effort to read and understand what they signed.