The Consumer Financial Protection Bureau is extending the compliance date for lenders that are required to comply with certain mortgage disclosure requirements outlined under Dodd-Frank’s new Truth-in-Lending Act provisions.
Lenders originally were required to comply with key disclosure requirements by Jan. 21, 2013. Those particular disclosures include the addition of information on the cancellation of escrow accounts, guidelines on consumer liability after foreclosure and information on the creditor’s policy for dealing with partial payments.
However, the CFPB said it’s extending the deadline for lenders who are required to meet those guidelines, so the agency can roll out those rules and the new integrated Truth In Lending Act and Real Estate Settlement Procedures Act disclosure form at the same time. The agency previously indicated that the finalization and roll out of the disclosure rules could take longer.
The CFPB has spent the past year and a half working on a disclosure form that combines TILA and RESPA disclosures into one document.
Rather than rolling out the first round of disclosure requirements and then launching the forms, CFPB is canceling the Jan. 21 compliance date and giving lenders more time on the other requirements. The idea is to roll out the entire new disclosure regime at the same time.
“Per today’s announcement, industry will not be required to provide those disclosures until after the Bureau’s previously proposed mortgage disclosure rules are finalized,” the CFPB said.
While no exact deadline was given, the CFPB said the final rules will be published next year.