The CFPB is seeking to renew two longstanding regulatory requirements covering real estate disclosures and mortgage advertising, according to recent filings in the Federal Register.
The filings, issued under the Paperwork Reduction Act, requested approval from the Office of Management and Budget to reinstate information collections tied to the Interstate Land Sales Full Disclosure Act (Regulations J, K, and L) and Mortgage Acts and Practices - Advertising (Regulation N).
The land sales rule requires developers of large subdivisions, typically those with 100 or more non-exempt lots, to register with the CFPB and provide buyers with detailed property reports. The requirement was originally designed to curb fraudulent land sales and misleading marketing practices.
Meanwhile, Regulation N prohibits deceptive or misleading claims in mortgage advertising and requires lenders and other covered entities to retain records of marketing materials for at least two years to support enforcement and oversight efforts.
Compared to other CFPB rules, the compliance burden for these requirements is relatively modest. The Bureau estimated about 197 entities are subject to land sales disclosures, while roughly 483 entities fall under the mortgage advertising rule.
The CFPB is now accepting public comments on both filings, including feedback on whether the information collections remain necessary and whether the estimated burden on the industry is appropriate.
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