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In testimony before a House committee, the CFPB director said that the rules meant to simplify the disclosure process are long and detailed because that's what the mortgage industry wanted.
August 1 -
The Consumer Financial Protection Bureau took two major steps toward reshaping the nation's residential mortgage market Monday, proposing revised mortgage disclosure requirements as well as stricter limits on high-cost loans.
July 9 -
The Consumer Financial Protection Bureau's prototypes for a single mortgage disclosure form won praise from industry groups Wednesday for their streamlined format, as well as the unorthodox way they are being developed.
May 18
WASHINGTON — The Consumer Financial Protection Bureau said Friday it will delay the effective date of a grab bag of disclosure requirements from the Dodd-Frank Act to coordinate compliance with a broader overhaul of the mortgage disclosure regime.
The CFPB is currently attempting an ambitious project required under Dodd-Frank to consolidate the overlapping disclosures now required by the Truth in Lending Act and Real Estate Settlement Procedures Act into a simpler, combined form. But under the reform law, banks have faced a separate list of required changes to mortgage forms — including the addition of new escrow-related disclosures — set to take effect Jan. 21.
Responding to industry concerns about having to incorporate changes twice — once in January and then again with the TILA-Respa consolidation — the bureau canceled the January deadline for several of the required changes and said they will all take effect when the entire consolidated regime is finalized.
"Considering these disclosures on the same timeline will ensure that consumers receive clear, concise and consistent information," CFPB Director Richard Cordray said in a press release.
In the bureau's July proposal for the new overall TILA-Respa form, the CFPB identified about a dozen of the one-off disclosure changes that it was considering implementing as part of the consolidation instead of in advance of the January deadline. Dodd-Frank gave the bureau authority to adjust the effective date. They include required warnings about a loan's negative-amortization features, lender policies on partial loan payments and disclosures about the cancellation of escrow accounts, among others.
In its
To be sure, a slew of mortgage rules under Dodd-Frank are still slated for a January 2013 deadline. Those include new servicing guidelines and compensation rules for loan originators, among others. January is also the deadline for a much-anticipated underwriting rule outlining how lenders verify borrowers' "ability to repay" their loans.
