The CFPB issued a final rule delaying the implementation of certain Dodd-Frank Act-mandated mortgage-disclosure requirements that were slated to take effect on Jan. 21.
Some of the delayed requirements include disclosures on the cancellation of escrow accounts, consumers’ liability for debt payment after foreclosure, and the creditor’s policy for accepting partial payment.
The bureau explained that it is delaying the requirements’ implementation so that the entire Truth in Lending Act-Real Estate Settlement Procedures Act disclosure integration regime can go into effect at the same time.
Without the extra time, the “industry would have to implement these new disclosures twice—once on [Jan. 21], and once again when the bureau finalizes the integrated TILA-RESPA disclosure regime,” the CFPB said.
ABA, which has urged the CFPB to coordinate its many mortgage rulemakings to reduce banks’ compliance burden and customer confusion, welcomed the announcement. The association has advocated that the bureau’s carefully integrated approach in this final rule extend to all Dodd-Frank Act-mandated changes.
Read the rule.