MBA Reacts to Federal Reserve’s Proposed Changes to Truth in Lending Act Regulations and Disclosures

MBA Reacts to Federal Reserve’s Proposed Changes to Truth in Lending Act Regulations and Disclosures July 24, 2009

by MBA Category: News || Mortgage | No Comments WASHINGTON, D.C. - July 23, 2009 - (RealEstateRama) — John A. Courson, President and CEO of the Mortgage Bankers Association issued the following reaction to the changes to Regulation Z (Truth in Lending) proposed today by the Federal Reserve Board.“MBA has long supported clear and concise disclosures for consumers as a means to help ensure that borrowers completely understand the mortgage loan they are getting and the costs of that loan. We are extremely pleased to see that the Federal Reserve Board has committed to working with the Department of Housing and Urban Development to better synchronize its TILA forms with HUD’s RESPA forms and we strongly endorse the effort to create one set of forms that would satisfy both laws and better inform consumers.

“We will be looking closely at the hundreds of pages of proposed rules and disclosure changes and will submit detailed comments within the 120-day public comment window.

Among other dramatic changes to the way loans are made and serviced today, the proposed rule contains broad restrictions on compensation for both mortgage bankers’ origination employees and mortgage brokers that will require considerable analysis. Our goal in responding will be to ensure that potential borrowers have a crystal clear understanding of their loan without making the process more burdensome than it has to be for either the borrower or the lender .” ###