In an effort to avoid potential consumer confusion and reduce the compliance burden for the industry, the CFPB announced that it is extending the deadline to comply with certain mortgage disclosure requirements, until the final rules integrating all of the disclosure requirements under the Truth in Lending Act and Real Estate Settlement Procedures Act take effect. In its July 2012 proposed rule (see July 10, 2012 Alert), the CFPB introduced the integrated TILA-RESPA disclosures, in addition to other mortgage-related disclosures. The proposed rule also proposed delaying the effective date of some disclosures, such as disclosures on a consumer’s liability for debt payment after foreclosure and the creditor’s policy for accepting partial payment. The decision to extend the deadline for compliance was in response to overwhelming support from the industry for additional time to provide the required disclosures, so that the entire TILA-RESPA disclosure integration regime could go into effect at once. The CFPB anticipates publishing these final rules next year.
Alert November 27, 2012