In July 2012, the Consumer Financial Protection Bureau (CFPB) announced a proposed rule which would replace the current disclosure forms mortgage loan applicants obtain under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). Under the CFPB's proposed rule, loan applicants will receive new "Loan Estimate" and "Closing Disclosure" forms which would present the costs and risks of the loan in clearer terms. To ensure the CFPB's mission to improve and clarify the disclosures consumers receive when applying for and closing on a mortgage is achieved, the Bureau also proposed a new more encompassing definition of the “finance charge.” The proposed rule eliminated numerous exceptions that exclude common costs (e.g., title insurance) from the finance charge, in an effort to provide a simpler definition of "finance charge." Comments on the proposed rule were due today. In order to provide the public more time to comment on the new definition of “finance charge,” the Bureau has extended the deadline for comments on proposed changes to the definition of "finance charge" to November 6, 2012.
In July 2012, the CFPB also proposed a rule that would amend Regulation Z to implement amendments to TILA made by the Dodd-Frank Act that expand the types of mortgage loans subject to the protections of the Home Ownership and Equity Protection Act (HOEPA). Given the extension of time to submit comments on the proposed changes to the definition of "finance charge" in the CFPB's proposed rule on integrated mortgage disclosures, the CFPB also has extended the comment period to November 6, 2012 for the portion of the HOEPA proposal regarding whether and how to account for the implications of a more inclusive finance charge on the scope of HOEPA coverage.
The original comment deadline of September 7, 2012 for the balance of proposed rules remains unchanged.