Press Release


Title: MBA Reacts to Federal Reserve’s Proposed Changes to Truth in Lending Act Regulations and Disclosures
Source:   MBA
Date: 7/23/2009

WASHINGTON, D.C. (July 23, 2009) – John A. Courson, President and CEO of the Mortgage Bankers Association issued the following reaction to the changes to Regulation Z (Truth in Lending) proposed today by the Federal Reserve Board.

“MBA has long supported clear and concise disclosures for consumers as a means to help ensure that borrowers completely understand the mortgage loan they are getting and the costs of that loan.  We are extremely pleased to see that the Federal Reserve Board has committed to working with the Department of Housing and Urban Development to better synchronize its TILA forms with HUD’s RESPA forms and we strongly endorse the effort to create one set of forms that would satisfy both laws and better inform consumers.

“We will be looking closely at the hundreds of pages of proposed rules and disclosure changes and will submit detailed comments within the 120-day public comment window.  Among other dramatic changes to the way loans are made and serviced today, the proposed rule contains broad restrictions on compensation for both mortgage bankers’ origination employees and mortgage brokers that will require considerable analysis. Our goal in responding will be to ensure that potential borrowers have a crystal clear understanding of their loan without making the process more burdensome than it has to be for either the borrower or the lender.”  

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:   www.mba.org.