The proposals covered a range of topics, including consumer disclosures under the Truth In Lending Act (TILA) for home equity lines of credit and closed-end mortgage loans, new disclosures for reverse mortgages, and restrictions on certains sales and marketing practices.
It took thousands of comments consisting of conflicting viewpoints to dissuade the Fed from pursuing the proposals and instead the Fed decided to defer to the new Consumer Financial Protection Bureau.
General rule-making authority over TILA will be transferred to the CFPB in July. Within 18 months after the transfer date, the CFPB is required to submit a proposal that combines the mortgage disclosures required by the TILA and the required Real Estate Settlement Procedures Act (RESPA) disclosures.
Many of the most recent developments in the reverse mortgage industry can be quite complicated and difficult to navigate. At the Reverse Mortgage Group, we can help you by connecting you with a qualified reverse mortgage professional.