The Consumer Financial Protection Bureau has issued an extension for new mortgage disclosures, initially slated to go into effect in January. The agency will wait to implement the new disclosure forms until other mortgage rule makings have been completed.
While some of these new disclosures were originally to be implemented by January 21, 2013, the CFPB issued a 36-page final rule entitled, “Delayed Implementation of Certain New Mortgage Disclosures” on Friday, November 16, 2012, that gives the industry extra time to provide these new disclosures.
In fact, mortgage industry participants will not have to provide the new disclosures until after the CFPB finalizes its rule to integrate the RESPA and Truth-in-Lending disclosures. Public comments to the CFPB on the proposal were due November 6, 2012. Now, the real estate industry is waiting for the CFPB to finalize this rule, which will likely happen next year.
The extension, the CFPB says, will allow for a more “seamless” integration with other disclosures for the mortgage industry and for consumers. However, industry participants see this as a win, in that consumers and lenders will not have to adjust twice to use of the new documents and procedures.
The CFPB is following protocol set by the Dodd Frank Act that requires the integration of Truth in Lending and Real Estate Settlement and Procedures Act (RESPA) disclosures as well as new disclosure requirements. They were set to take effect January 21, unless other action was taken.