Warren Responds to Blue Dog Coalition Regarding TILA/RESPA Disclosures

By J. Preston Carter, J.D., LL.M., Editor, Financial Privacy Law Guide, CCH Federal Banking Law Reporter, State Banking Law Reporter and Bank Digest; co-author, Dodd-Frank Wall Street Reform and Consumer Protection Act—Law, Explanation and Analysis, June 8, 2011.

Responding to a letter from Reps. Ben Chandler, D-Ky., and Tim Holden, D-Pa., on behalf of the Blue Dog Coalition’s Task Force on Oversight and Regulatory Review, regarding reducing regulatory burden and complying with the disclosure requirements of the Truth in Lending Act and the Real Estate Settlement Procedures Act, Treasury Special Advisor Elizabeth Warren pointed to the Know Before You Owe initiative that is “designed to reduce unnecessary regulatory compliance burdens for mortgage originators, including community banks and credit unions.”

Warren noted that the Dodd-Frank Act requires the Consumer Financial Protection Bureau to consolidate mortgage disclosures mandated under TILA and RESPA into a single, integrated disclosure. She said, “We are working to design a disclosure that is clearer and shorter [than the current forms]—easier for customers to understand and less burdensome for lenders to fill out.” Warren assured the coalition that lenders, brokers and consumers were being consulted during the development of the draft disclosure forms. She added that over 14,500 people, including industry professionals and consumers, have provided feedback on the prototypes using the online tool on the Know Before You Owe feedback website.