Three industry groups are urging the Federal Reserve Board to postpone implementation of new mortgage disclosures that are scheduled to go into effect January 30.
The American Bankers Association, Consumer Mortgage Coalition and Mortgage Bankers Association want the Fed to make compliance voluntary on Jan. 30 — provided that lenders are in compliance with the 2009 amendments to Real Estate Settlement Procedures Act rules.
The new disclosures mandated by the Mortgage Disclosure Improvement Act involve the presentation of changes to the interest rate or payments in tabular form. Lenders also have to provide a statement to the borrower that they cannot guarantee a refinancing of the loan in the future.
The trade groups contend RESPA rules require comparable disclosures under the MDIA interim final rule approved by the Fed on Sept. 24. The joint letter also says implementation by Jan. 30 will be "costly" and "impossible" for some lenders.
The trade groups say a major priority of the new Consumer Financial Protection Bureau will be to merge and streamline mortgage disclosures in 2011.
"The lender associations believe the Board should consider this rulemaking effort in light of the broader [CFPB] mortgage reform effort, and minimize the addition of repetitive forms and rulemakings in favor of a more comprehensive approach," the Nov. 23 letter says.
