Page 7 Client Newsletter June 2016

CFPB Legislative Changes: What is to Come in the Remainder of the Year 2016

By Elizabeth Pophal, Esquire

cial institutions and servicers alike. The Agenda also discusses the Bureau’s intent to enhance loss mitigation requirements, among other amendments. Currently, the CFPB is in the proposed rule stage on amendments to the federal mortgage disclosure requirements under TILA (Regulation Z). "The Bureau will be seeking comment on a proposal to add new provisions and amend certain other provisions of Regulation Z in order to pro- vide additional clarity to creditors in order to promote consistency in the provision of information for Federal mortgage transac- tions that will enable consumers to more readily understand their mortgage transac- tions."² Thus, the proposed legislative changes to TILA and Regulation Z may assist financial institutions and servicer cli- ents by providing clarification on the dis- closure requirements recently enacted and amended. Currently, the CFPB is in the final rule stage on amendments to RESPA and Regulation Z. Of particular interest are the new loss mitigation requirements. Specifi- cally, the following excerpt is of note:

In the wake of 2015 legislative changes to the Truth in Lending Act ("TILA") and Real Estate Settlement Procedures Act ("RESPA"), namely, the TILA-RESPA Inte- grated Disclosure Rule, the Consumer Fi- nancial Protection Bureau ("CFPB") has additional legislative changes in store for the default servicing industry in the year 2016. According to the CFPB’s Semiannu- al Regulatory Agenda ¹, current as of March 25, 2016, the Bureau plans to com- plete summer rulemaking under the Dodd- Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"), specific to mortgage protections. The Agenda discusses the intent to clarify and provide additional guidance around federal mortgage disclosures, which con- sumers must receive when applying for and closing on a mortgage under TILA and RESPA. This will further the intent of the Bureau’s "Know Before You Owe" mort- gage disclosure rule, which took effect in the fall of 2015 and caused major changes in the default servicing industry for finan-

7 GILBERT GARCIA GAZETTE— JUNE 2016

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