Fed Passes Buck to Consumer Agency on Three Mortgage Rules
The Federal Reserve yesterday decided to let the new consumer financial agency issue final rules on three aspects of mortgage disclosure law under the Truth in Lending Act.
The proposed rules issued by the Fed dealt with what disclosures lenders must make to consumers on the right to rescind certain loans and on disclosures concerning reverse mortgages. They dealt with Regulation Z, the regulatory statute implementing TILA.
The Consumer Financial Protection Bureau, which is scheduled to begin operation in July, will have responsibility for issuing rules regarding TILA and the Real Estate Settlement and Procedures Act. The financial overhaul bill passed last year, which created the new bureau, mandated that within 18 months of its existence, the bureau must issue proposed rules to combine TILA and RESPA disclosures.
Both CUNA and NAFCU had sent letters urging the Fed to take the action that it did.