On December 5th, the FRB issued a proposal for changes to Regulation Z (Truth in Lending) that would revise the disclosure requirements for mortgage loans. The revisions would implement the Mortgage Disclosure Improvement Act (MDIA) which was enacted in July 2008 as an amendment to the Truth in Lending Act (TILA). Under the MDIA, the proposed rules would become effective on July 30, 2009. The original due date for comments was January 23, 2009, but the FRB extended it to February 9, 2009.
From the press release:
"The MDIA requires creditors to give good faith estimates of mortgage loan costs ("early disclosures") within three business days after receiving a consumer's application for a mortgage loan and before any fees are collected from the consumer, other than a reasonable fee for obtaining the consumer's credit history. These requirements are consistent with the Board's July 2008 final rule which applied to loans secured by a consumer's principal dwelling. The MDIA broadens this requirement by also requiring early disclosures for loans secured by dwellings other than the consumerís principal dwelling, such as a second home."
Here's a link to the Federal Reserve press release:http://www.federalreserve.gov/newsevents/press/bcreg/20081205a.htm