View Rule

On August 26, 2009, the Board of Governors of the Federal Reserve System (Board) proposed for comment proposals to amend Regulation Z (Truth in Lending) regarding disclosure requirements for closed-end loans secured by real property or a dwelling and open-end home equity lines of credit (HELOCs). On September 24, 2010, the Board proposed certain amendments to Regulation Z, and the staff commentary to the regulation, as part of a comprehensive review of TILA's rules for home-secured credit. Among other things, the Board's proposal addressed: (a) Revising the rules for the consumer's right to rescind certain open-end and closed-end loans secured by the consumer's principal dwelling; (b) revising the rules for determining when a modification of an existing closed-end mortgage loan secured by real property or a dwelling is a new transaction requiring new disclosures; and (c) amending the disclosure rules for open- and closed-end reverse mortgages. Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the rulemaking authority for TILA generally transferred from the Board to the CFPB on July 21, 2011. Many of the disclosure aspects of these proposals have been superseded by the rulemaking integrating the mortgage disclosures required by TILA and the Real Estate Settlement Procedures Act (Section 1032(f) of the Dodd-Frank Act). 78 FR 79730. Moreover, most other aspects of these proposals have become stale with the passage of several years since their issuance.  At this point, the Bureau believes that any rulemaking it may undertake in the areas the proposals addressed would be best achieved through fresh initiatives that would begin with new proposals based on new reviews of the relevant markets and other appropriate outreach and fact gathering, followed by fresh analyses of any policy and legal issues or concerns presented.  The CFPB has been evaluating further action regarding these pending proposals and, at this time, has determined that it will take no further action.  The Bureau is continuing to assess the mortgage market on an ongoing basis and will revisit the need to initiate new proposals at a later date.