Section 1032(f) of the Dodd-Frank Act requires that the CFPB create a form combining the disclosure requirements of both TILA and sections 4 and 5 of RESPA. While the CFPB cannot officially act on its obligation to create a combined Truth in Lending/RESPA credit shopping disclosure until it has a Director in place, it has begun moving ahead with this task by creating two alternative prototypes (labeled as “Azalea” and “Camellia”) that are available for review and comment on its website (www.consumerfinance.gov). In addition to requesting comment from the public and the industry, the CFPB will be using these prototypes in its consumer testing process in preparation for its formal proposal of a single combined disclosure form. The CFPB is currently analyzing its third round of comments and will likely post revised prototypes in the near future. The CFPB has one year from the Transfer Date to propose its TILA/RESPA disclosure for comment.

Practical Tip: Remember that in combining and amending the Truth in Lending and RESPA disclosures, the CFPB will have to revise Regulations Z and X in order to accomplish this goal. The implementation of these disclosure changes will again require systems and processing changes – not too long after the industry geared up for 2009’s RESPA GFE amendment.

Also note that the CFPB will be publishing under its own title in the Code of Federal Regulations all the regulations that implement the federal consumer financial laws transferred to the Bureau’s authority. We understand that this reissuance of the regulations may require the renumbering of certain regulatory sections.