Here’s how TRID is changing the mortgage industry

Here’s how TRID is changing the mortgage industry

Up and down the pipeline things are changing

Monday Morning Cup of Coffee: Is Fed, housing policy at a crossroads?

Plus why private investors don’t want to buy mortgages, TRID and more

[Chart] FHA mortgage insurance boom in the works?

MBA notes impact of cutting MIPs

Fed leaves 3 mortgage disclosure rules pending for the CFPB

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The Federal Reserve said Tuesday it would not finalize three disclosure rules under Regulation Z before transferring rulemaking authority to the Consumer Financial Protection Bureau this summer. Reg Z is the regulatory statute, which went into effect over the weekend, that implements the Truth in Lending Act. Through it, the Fed was granted the authority to write new rules how terms in a mortgage loan would be disclosed to consumers. But, according to the Dodd-Frank Act, rulemaking authority under TILA will be granted to the still forming CFPB when the bureau opens its doors July 21. Though, a director has yet to be appointed. Two of the proposals were issued in August 2009 and the other in September. Within the three proposals are rules on how, among other things, lenders explain to consumers their rights to rescind certain loans. The rule would have also clarified the responsibilities of the creditor if the consumer did. The September rule also includes changes to how terms for reverse mortgages and modifications are disclosed, and detailed changes to how these products are advertised and sold. The Fed received more than 5,000 comments from industry players regarding these delayed rules. The central bank made its decision because such changes to TILA and the Real Estate Settlement and Procedures Act would have been subject to further revisions by the new bureau. Under Dodd-Frank, the CFPB is required to combine the TILA and RESPA disclosures and issue a proposal 18 months after the transfer date on that combination. "In light of that mandate, and the upcoming transfer date, the board has carefully evaluated whether there would be public benefit in proceeding with the rulemakings initiated with the board's August 2009 and September 2010 proposals at this time," the Fed said. Write to Jon Prior. Follow him on Twitter: @JonAPrior

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