On July 23, 2009, the Federal Reserve Board (the Fed) proposed changes to its Truth in Lending Act (TILA) regulations designed to improve consumer disclosures received in connection with mortgages and home equity lines of credit (HELOC).
The changes are based on consumer testing conducted by the Fed and are designed to enhance the ability of consumers to shop for and understand the cost of mortgages and HELOCS.
The Fed announced it would work with the U.S. Department of Housing and Urban Development (HUD) to make disclosures under TILA complementary with the disclosures required by the Real Estate Settlement Procedures Act (RESPA).
The Fed is considering developing a combined disclosure form that meets the requirements of both TILA and RESPA.
NAR has urged the Fed and HUD to develop a single disclosure form. The proposal also prevents mortgage loan originators from steering consumers to more expensive loans by prohibiting payments to mortgage brokers or loan officers based on the interest rate or other loan terms.
The public comment period will end 120 days after publication of the proposals in the Federal Register (expected soon).Federal Reserve Board Press Release (7/23/09), including numerous links to more detailed information >Contacts: Jeff Lischer, 202-383-1117 Contacts: Tony Hutchinson, 202-383-1120
Monday, July 27, 2009
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Great detailed post about the new TIL Marc! The more we can educate about these new changes the easier the transitions will be. Very nice!
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