FREE PREVIEW
|
LOGIN OR SUBSCRIBE NOW TO READ THIS ARTICLE
|
Digging in: First thoughts on new mortgage disclosures
|
Regulatory Updates
Monday, December 9, 2013
|
|
The wait is finally over. The Consumer Financial Protection Bureau (CFPB) released the new mortgage disclosure forms and their implementing rule on Nov. 20. The final rule provides answers to many of the industry’s long-standing questions about the RESPA/Truth in Lending Act (TILA) proposal released last year.
The final rule, which takes effect in August 2015, includes several changes in response to industry comments. For instance, the bureau made important changes to the proposed definition of business day. The CFPB also decided to put off finalizing a proposal to change the annual percentage rate (APR) calculation. However, other debated provisions remained unchanged in the final rule. For instance, title insurance is still described as “optional” on the bureau’s Closing Disclosure.
Under the Dodd-Frank Act, the CFPB was charged with integrating the RESPA and TILA mortgage disclosures. In May 2011, the CFPB released its first group of integrated mortgage disclosure form prototypes — two months before the agency opened its doors. The agency then spent 14 months releasing prototypes and requesting feedback from the public. The bureau published its 1,099-page proposed rule on July 9, 2012. The proposal suggested new integrated disclosure forms, as well as new timing requirements, modified tolerance levels, new definitions and record keeping requirements. Many in the industry were concerned that some of the proposed changes were impractical and would hinder consumer’s access to mortgage loans.
TO READ THE FULL STORY
|
|
Already a subscriber?
Problems logging in?
Please call 330-659-6101 x 805 or email us for assistance.
|
|
Today's other top stories