The ""Consumer Financial Protection Bureau"":http://www.consumerfinance.gov (CFPB) announced Friday it's granting more time for the industry to implement new mortgage disclosures required under the Dodd-Frank Act and the Consumer Protection Act.[IMAGE]
The extension was provided ""in order to allow a more seamless integration with other mortgage disclosures that have been proposed by the Bureau,"" the CFPB said in a statement.
As mandated by Dodd-Frank, the CFPB ""proposed"":http://files.consumerfinance.gov/f/201211_cfpb_final-rule_title-XIV-disclosures-extension.pdf new and integrated mortgage disclosure forms to simplify and [COLUMN_BREAK]
streamline requirements from the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). The proposal was made in July.
In addition, the Dodd-Frank Act also establishes additional new mortgage disclosure requirements, including disclosures on cancellation of escrow accounts, a consumers' liability for debt payment after foreclosure, the creditor's policy for accepting partial payment and a warning on negative amortization features. The requirements would have had to be implemented January 21, 2013 if no action was taken.
When the CFPB sought comment on granting more time for the industry to provide the new disclosures, those who commented ""overwhelmingly"" supported the idea of allowing extra time so the ""disclosures take effect together.""
""Without this extra time, the industry would have to implement these new disclosures twice--once on January 21, 2013, and once again when the Bureau finalizes the integrated TILA-RESPA disclosure regime,"" the CFPB explained in a statement.
Now, the industry can implement the rules together after proposed mortgage disclosure rules are finalized. The CFPB expects final rules to be published next year.