The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Advanced
Search
About
the Fed
News
& Events
Monetary
Policy
Supervision
& Regulation
Payment
Systems
Economic
Research
Data
Consumers
& Communities
Board of Governors of the Federal Reserve System
The Federal Reserve, the central bank of the United States, provides the nation with a
safe, flexible, and stable monetary and financial system.
Home > News & Events > Press Releases
Press Release
May 08, 2009
Board approves final rules revising disclosure
requirements for mortgage loans under
Regulation Z
For immediate release
Share
The Federal Reserve Board on Thursday approved final rules that revise
the disclosure requirements for mortgage loans under Regulation Z
(Truth in Lending). The revisions implement the Mortgage Disclosure
Improvement Act (MDIA), which was enacted in July 2008 as an
amendment to the Truth in Lending Act (TILA).
The MDIA seeks to ensure that consumers receive cost disclosures
earlier in the mortgage process. In several respects, the MDIA is
substantially similar to final rules issued by the Board in July 2008.
However, the MDIA also broadens and adds to those regulatory
requirements. The final rule largely follows a proposal issued by the
Board in December 2008. Under the MDIA, creditors must comply with
the new provisions on July 30, 2009. The Board's implementing
regulations apply to dwelling-secured consumer loans for which a
creditor receives an application on or after July 30, 2009.
The MDIA requires creditors to give good faith estimates of mortgage
loan costs ("early disclosures") within three business days after
receiving a consumer's application for a mortgage loan and before any
fees are collected from the consumer, other than a reasonable fee for
obtaining the consumer's credit history. These requirements are
consistent with the Board's July 2008 final rule, which applied to loans
secured by a consumer's principal dwelling. The MDIA broadens this
requirement by also requiring early disclosures for loans secured by
dwellings other than the consumer's principal dwelling, such as a
second home.
In addition, the rules would implement the MDIA's requirements that:
Creditors wait seven business days after they provide the early
disclosures before closing the loan; and
Creditors provide new disclosures with a revised annual
percentage rate (APR), and wait an additional three business
days before closing the loan, if a change occurs that makes the
APR in the early disclosures inaccurate beyond a specified
tolerance.
The rules would permit a consumer to expedite the closing to address a
personal financial emergency, such as a foreclosure.
The notice that will be published in the Federal Register is attached.
Publication is expected to occur soon.
Federal Register notice: HTML | 112 KB PDF
Last Update: May 08, 2009
BOARD OF GOVERNORS
of the FEDERAL
RESERVE SYSTEM
About the Fed
News & Events
Monetary Policy
Supervision & Regulation
Payment Systems
Economic Research
Data
Consumers & Communities
Financial Stability
TOOLS AND
INFORMATION
STAY CONNECTED
Contact
Publications
Freedom of Information (FOIA)
Office of Inspector General
Budget & Performance | Audit
No FEAR Act
Español
Website Policies | Privacy
Program
Accessibility
BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
20th Street and Constitution Avenue N.W., Washington, DC 20551