At the end of August, the Federal Reserve published proposed amendments to Regulation Z of the Truth in Lending Act (TILA).
The proposed changes would revise the disclosure rules and prohibit certain payments to mortgage brokers and loan officers based on the terms and conditions of the loan.
In addition, it would prohibit steering consumers into transactions that are not in their best interest in order to increase compensation to the loan officer. While reverse mortgages are not specifically included in the proposal, it acknowledges that the Board anticipates reviewing the rules surrounding a reverse mortgage at a later date.
The Mortgage Banker’s Association issued two extensive statements expressing concern that the proposed changes could harm consumers and increase costs unnecessarily.
The National Reverse Mortgage Lenders Association notified members that it would be submitting comments to the Federal Reserve Board in response to some very important proposed regulatory changes.
Write to Reva Minkoff