Bureau of Consumer Financial Protection: Mortgage Servicing Rules Under the Truth in Lending Act (Regulation Z)
GAO-13-409R: Mar 4, 2013
- Full Report:
GAO reviewed the Bureau of Consumer Financial Protection's (Bureau) new rule on mortgage servicing rules under the Truth in Lending Act (RegulationZ). GAO found that (1) the final rule amends Regulation Z, which implements the Truth in Lending Act and the official interpretation to the regulation, which interprets the requirements of Regulation Z. This final rule implements provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) regarding mortgage loan servicing. Specifically, this final rule implements Dodd-Frank Act sections addressing initial rate adjustment notices for adjustable-rate mortgages, periodic statements for residential mortgage loans, prompt crediting of mortgage payments, and responses to requests for payoff amounts. This final rule also amends current rules governing the scope, timing, content, and format of disclosures to consumers regarding the interest rate adjustments of their variable-rate transactions. Concurrently with the issuance of this final rule, the Bureau amended Regulation X, which contains companion rules implementing amendments to the Real Estate Settlement Procedures Act of 1974; and (2) the Bureau complied with the applicable requirements in promulgating the rule.