CFPB Gives Extra Time on Mortgage Disclosures
The Consumer Financial Protection Bureau Friday said it will give residential lenders extra time to provide certain new disclosures required under the Dodd-Frank Act.
In a press statement the agency said mortgage originators “will not be required to provide those disclosures until after the bureau’s previously proposed mortgage disclosure rules are finalized.”
The agency is trying to merge RESPA and Truth in Lending Act disclosures as required under DFA. (Other disclosures are also involved, noted Marc Savitt, president of the National Association of Independent Housing Professionals.)
The comment period on the disclosures ended recently and the rule was set for implementation on Jan. 21 but it now appears that the target date will be pushed back.
The agency is still weighing comment letters.
As Savitt noted, “The CFPB has extraordinary exemption authority” under the Dodd-Frank Act, which means it can extend deadlines for mandated rule changes.
“Considering these disclosures on the same timeline will ensure that consumers receive clear, concise and consistent information,” said CFPB director Richard Cordray. “By seeking public comment and conducting consumer testing for these disclosures together, we can avoid the duplication and inefficiency that existed in the past.”