Truth in Leasing Disclosures

In the first Task Force meeting, Brian Matise, suggested a practical methodology to disclosure the actual cost of purchasing a home in a Metropolitan District. Consider requiring Truth in Leasing type disclosures Plus a supplemental disclosure actual remaining principal, interest and bond interest rate to maturity.

When approving MDs #1 and #2, Counties require the bonds be limited to 40 years, usually between 5 to 10 years in development, then final payout the next 30 years. When on builds a home in a MD with deed restrictions of 40 years, you just built your stick built home on leased land and Truth in Leasing disclosure should accompany all subsequent resales. This methodology already exists in Truth in Lending Act.

The Golden Rule of Finance, he who has the Gold makes the rules. Nothing could be more true in MD#2 financing and Refunding transactions. In addition, the industry has significant input in bond investment disclosures. While these disclosure are meaningful to sophisticated bond investors, the disclosures ( - & -) are deceptive for the common mortgage debtor and for unsuspecting, new community MD Directors.