NEW YORK (Reuters) – The biggest changes to home loan disclosures since the 1970s are around the corner and many in the industry are warning that misunderstandings will create a logjam of confusion just as housing tries to recover.

A complete overhaul of the "good faith estimate" -- a standard disclosure document sent to borrowers -- under the Real Estate Settlement Procedures Act, known as RESPA, will take effect on January 1, potentially disrupting home sale closings.