On July 9, 2012 the CFPB issued two significant proposed mortgage-related rulemakings under The Dodd-Frank Wall Street Reform and Consumer Protection Act.
One proposal provides for the combination of the separate application disclosures and the separate closing disclosures required by the Real Estate Settlement Procedures Act and Truth in Lending Act into a single application disclosure (the “Loan Estimate”) and single closing disclosure (aptly, the “Closing Disclosure”). The proposal includes rules governing the disclosures, and also revives a Federal Reserve Board proposal to expand the charges that are included in the calculation of the finance charge and annual percentage rate. There are two separate comment deadlines for the proposal, September 7, 2012 and November 7, 2012, with the later date applying to the integrated disclosure proposal.
The other proposal will implement Dodd-Frank Act changes regarding high-cost loans that are subject to the Home Ownership and Equity Protection Act requirements of TILA, and related homeowner counseling requirements. Comments are due on this proposal by September 7, 2012.
The proposals are massive, totaling nearly 1,400 pages, much to the chagrin of environmentalists. Please see our alerts for a summary of the proposals: