CFPB to consult small businesses before finalizing TILA-RESPA mortgage disclosures
The Consumer Financial Protection Bureau says it will spend the next few months accelerating its work on regulations associated with the agency's proposed mortgage disclosure forms, while also reviewing several mortgage-related rules proposed under the Truth-in-Lending Act that have yet to go into effect. Before finalizing any new rules tied to the TILA-RESPA mortgage disclosure integration, Kelly Thompson Cochran, deputy assistant director for the CFPB, says the bureau will consult with a panel of small businesses to discuss any unforeseen consequences the rules could have on the marketplace. Thompson Cochran made that statement while testifying on behalf of the CFPB in front of the House Subcommittee on Insurance and Housing. The consumer protection bureau goes live on July 21, one-year after the signing of the Dodd-Frank Act that created the CFPB as a separate regulatory entity to oversee the mortgage finance and consumer credit space. Thompson Cochran said the bureau, which has more than 100 employees ready for the agency's July 21 launch, is currently studying Dodd-Frank Act amendments to prepare for the agency's regulatory role in the segment. The CFPB has a deadline of January 2013 to flesh out and finalize many of the lending and consumer rules that now fall under its jurisdiction, Thompson Cochran said. Earlier in the year, the CFPB began testing two different sets of mortgage disclosure forms that combine the TILA and the Real Estate Settlement and Procedures Act forms into a single document. "In response to our posting of the two initial prototypes, more than 13,000 users provided written feedback," Thompson Cochran said. "More than 7,000 came through the consumer version of the Internet tool and more than 5,000 through the industry version." Write to Kerri Panchuk.