Federal Reserve Proposed TILA Regulations; Focus on Closed End Mortgage Links.

The Federal Reserve has

"proposed significant changes to Regulation Z (Truth in Lending) intended to improve the disclosures consumers receive in connection with closed-end mortgages and home-equity lines of credit (HELOCs). These changes, offered for public comment, reflect the result of consumer testing conducted as part of the Board's comprehensive review of the rules for home-secured credit. The amendments would also provide new consumer protections for all home-secured credit."

Their complete press release is HERE; their summary is HERE.

WSJ story is HERE.

There is a 120 day comment period, once the proposed regulation is actually published in the Federal Register.


Below are links to materials from Federal Reserve on their proposed regulation of Closed End Mortgages ONLY. (Does not include HELOC related materials).

Closed End Mortgage Links from Federal Reserve Website

• Draft Federal Register notice, Regulation Z--Closed-end Mortgages (8.2 MB PDF)
• Key Questions to Ask About Your Mortgage (Attachment A) (68 KB PDF)
• Fixed vs. Adjustable Rate Mortgages Early Disclosure (Attachment B) (73 KB PDF)
• Summary of Findings: Design and Testing of Truth in Lending Disclosures for Closed-end Mortgages (2.8 MB PDF)

Model forms and samples:

1. H–4(B) (91 KB PDF) Adjustable-Rate Loan Program Model Form
2. H–4(D) (86 KB PDF) Adjustable-Rate Loan Program Sample (Hybrid ARM)
3. H–4(E) (86 KB PDF) Adjustable-Rate Loan Program Sample (Interest Only ARM)
4. H–4(F) (87 KB PDF) Adjustable-Rate Loan Program Sample (Payment Option ARM)
5. H-4(G) (58 KB PDF) Adjustable-Rate Adjustment Notice Model Form
6. H–4(I) (99 KB PDF) Adjustable-Rate Adjustment Notice Sample (Interest Only ARM)
7. H–4(J) (99 KB PDF) Adjustable-Rate Adjustment Notice Sample (Hybrid ARM)
8. H–4(K) (49 KB PDF) Adjustable-Rate Annual Notice Model Form
9. H–4(L) (107 KB PDF) Negative Amortization Monthly Disclosure Model Form
10. H-19(A) (150 KB PDF) Fixed Rate Mortgage Model Form
11. H-19(B) (140 KB PDF) Adjustable-Rate Mortgage Model Form
12. H-19(C) (158 KB PDF) Mortgage with Negative Amortization Model Form
13. H-19(D) (169 KB PDF) Fixed Rate Mortgage with Balloon Payment Sample
14. H-19(E) (215 KB PDF) Fixed Rate Mortgage with Interest Only Sample
15. H-19(F) (164 KB PDF) Step-Payment Mortgage Sample
16. H-19(G) (218 KB PDF) Hybrid Adjustable-Rate Mortgage Sample
17. H-19(H) (204 KB PDF) Adjustable-Rate Mortgage with Interest Only Sample
18. H-19(I) (151 KB PDF) Adjustable-Rate Mortgage with Payment Option Sample