Mortgage Disclosure Update

Get the latest update on mortgage disclosure issues.

The Consumer Financial Protection Bureau (CFPB) Director, Richard Cordray, recently provided an update on mortgage disclosure requirements, known as the "Know Before You Owe" rule. Condray announced that the Bureau will seek to delay implementation of the new mortgage disclosure requirements and forms until October 1, 2015.

In a membership updated dated June 19, 2015, Worldwide ERC® provide additional information on the mortgage disclosure updated, as follows:

"The new requirements and use of new forms were scheduled to take effect on August 1. Director Cordray cited an administrative error which would postpone for two weeks the implementation of the rule as the reason for seeking the delay until October 1.

To make a final decision on the delay, the CFPB will be issuing a proposed amendment to the regulations. No date has been provided as of yet as to when the proposed amendment will be issued. The CFPB will open the proposed amendment to public comment and then make a final determination on a delay after reviewing the feedback.

The TILA-RESPA Integrated Disclosure (TRID) rule would implement several new requirements on mortgage disclosure. It would also replace the Good Faith Estimate as well as "early" Truth in Lending forms with a "Loan Estimate" form and the HUD-1 and Truth in Lending forms with a single "Closing Disclosure" form.

According to the statement by Director Cordray, the date of when the new mortgage disclosure requirements become effective and the start date of when the new forms would be used could potentially be October 1."