Comment Period on the Integrated Mortgage Disclosure Rules Ends November 6, 2012 by Brian Gallogly, Esq.

As a component of its “Know Before You Owe” project and pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Consumer Finance Protection Bureau (the “CFPB”) issued its proposed rule on July 9, 2012 to integrate the mortgage loan disclosure requirements under the Real Estate Settlement Procedures Act of 1974 (“RESPA”) and the Truth In Lending Act (“TILA”) and their regulations (Regulation X and Regulation Z, respectively). Comments on the proposed rule and the two new disclosure forms – the Loan Estimate and the Closing Disclosure – are due by November 6, 2012 to the CFPB. The Loan Estimate would replace the Good Faith Estimate under RESPA and the “early” disclosure under TILA. The Closing Disclosure would replace the HUD-1 Settlement Statement and the “final” disclosure under TILA. Please note that the proposed rule does not apply to home equity lines of credit, reverse mortgages, mortgages secured by a mobile home or a dwelling that is not attached to land, or originators that make five or fewer loans in one year. Comments may be submitted electronically at http://www.regulations.gov or by mail to Monica Jackson, Office of the Executive Secretary, Consumer Finance Protection Bureau, 1700 G Street, Washington DC 20552.

Because the proposed rule is over 1,000 pages, a complete summary is obviously beyond the scope of this article. Nevertheless, a few points related to the timing of certain items are worth highlighting.