November 6, 2012 was the deadline for comments to the Consumer Financial Protection Bureau (CFPB) on its proposed rule to integrate mortgage disclosures required by Truth in Lending (TILA) and the Real Estate Settlement and Procedures Act (RESPA). Comments posted by individual consumers, lenders and title companies of all sizes, and trade organizations are available to the public at regulations.gov.
According to this site, more than 2,700 comments have been posted. At the ALTA annual convention, Richard Horn, Senior Counsel in the Office of Regulations at the CFPB and working on the integrated forms proposed rule, stated several times that “CFPB will read every single comment.”
For the next few months, we will be in a waiting period until the CFPB publishes its final rule. Although the Dodd-Frank Act mandated deadlines for final regulations in a number of areas, the Act did not set a deadline for the CFPB to publish a final rule for the integration of the TILA and RESPA disclosures into the new Loan Estimate and Closing Disclosure forms. Accordingly, we do not know when we can expect to see the final forms and the final rule which will govern them.** The best estimate is that the final rule will not be issued by the CFPB until March 2013, and perhaps even later.
CFPB has also expressed that it wants to “get this right.” Hopefully, the comments submitted by the title industry will make a difference.
** Update to this CFPB update! The CFPB has indicated that the ruling will be available later this year, approximately late summer. For more details, please review our CFPB website.