The Consumer Financial Protection Bureau announced last week that it would delay the effective date for new pending mortgage disclosure rules.
The CFPB did not specify a new effective date for compliance but said that lenders will not be required to comply until all proposed mortgage disclosure regulations are finalized, which is expected by the end of 2013, Credit Union Times reports.
The 2010 Dodd-Frank Act mandated that the CFPB combine certain disclosures from the Real Estate Settlement Procedures Act and the Truth in Lending Act. Dodd-Frank also established new mortgage disclosure requirements, which would have taken effect Jan. 21 unless regulators took action.
“Considering these disclosures on the same timeline will ensure that consumers receive clear, concise and consistent information,” Richard Cordray, the director of the CFPB, said, according to Credit Union Times. “By seeking public comment and conducting consumer-testing for these disclosures together, we can avoid the duplication and inefficiency that existed in the past.”
Some banking trade groups, including the National Association of Federal Credit Unions and the Credit Union National Association, have made repeated calls to the CFPB to delay the effective dates for the disclosures. Both groups expressed support for the CFPB’s announcement.
“The volume of change credit unions will face this year and next on the mortgage front is almost too large to quantify and we would ask the CFPB anew to take a hard look at not just implementation dates but areas where regulation can be eliminated,” Carrie R. Hunt, NAFCU’s general counsel and vice president of regulatory affairs, said, Credit Union Times reports.