Text of Rule #2: Truth in Lending Act (Regulation Z)

This is one of two, related final mortgage servicing rules. CFPB issued two separate rules because its authority comes from two different statutes. The “Regulation Z” final rule implements parts of the Truth in Lending Act that cover:

  • 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.

It also amends current rules about the scope, timing, content, and form of disclosures to consumers about interest rate adjustments of variable-rate mortgages.

CFPB issued both final rules on January 17, 2013. They will become effective on January 10, 2014.

View the full document as issued. (When the official version is published in the Federal Register, we will post the link here.) The document has the following parts:

  • Preamble summarizing why CFPB is ssuing the rule, its legal authority, the reasoning behind the rule, responses to public comments, and analysis of the benefits, costs, and impacts of the rule
  • Actual text of the rule, which, when effective, will amend the existing version of Regulation Z
  • Official interpretations of the rule, which provide more detailed explanation of certain sections