In a decision that has drawn praise from the Mortgage Bankers Association, the Federal Reserve has announced that it likely won't finalize a trio of pending regulations involving the Truth in Lending Act, since most of the regulations would come under the control of the Consumer Financial Protection Bureau later this year.
The various proposed rules, which were originally issued in August and September, would have overhauled the disclosure forms for a variety of different loans, which has been one of the stated goals for the CFPB.
"It is wholly appropriate for the Fed to halt these rulemakings," said John A. Courson, President and CEO of the MBA. "We agree with the Board's analysis that completing these rulemakings, then having the CFPB do its own rulemaking shortly thereafter, would not be in the public's best interest."
The agency is officially scheduled to take over rulemaking authority for the TILA in July.
Action from the CFPB regarding mortgage disclosures may come quickly after it takes over regulatory control. White House advisor Elizabeth Warren, who is still forming the new agency, has said that overhauling disclosures should be one of the CFPB's top priorities.
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