Industry Given More Time To Implement Mortgage Disclosure Rules

The Consumer Financial Protection Bureau (CFPB) is granting the mortgage industry more time to implement new mortgage disclosure rules mandated by the Dodd-Frank Act and the Consumer Protection Act. The original deadline for implementation was January 21, 2013 but now the CFPB is allowing the industry to implement the required changes after the new mortgage forms have been approved. That will take place sometime in 2013, but no definite date has been set.  The new mortgage disclosure rules include:

1. Disclosure about the creditor’s partial payment policy.
2. Disclosure on the impact of paying off a mortgage early.
3. Disclosure of negative amortization.
4. Disclosure on what post-foreclosure debt the borrower is expected to pay.
5. Disclosure on escrow account cancellation.
6. Disclosure of the interest rate, loan amount and closing costs.
7. Disclosure of expected monthly payment amount.
8. Disclosure of tax and insurance information.

Mortgage companies must integrate the new disclosures into a streamlined form that makes it easy for borrowers to understand essential information.  The new rules also restrict how much closing costs can increase beyond what was stated on the borrower’s loan estimate. To find out more about the new mortgage disclosure rules visit the CFPB.