The Federal Reserve Board is proposing enhanced consumer protections and disclosures for home mortgage transactions. Changes proposed include significant changes to Regulation Z (Truth in Lending). The latest proposal would:
Improve the disclosures consumers receive for reverse mortgages and impose rules for reverse-mortgage advertising to ensure advertisements contain accurate and balanced information;
Prohibit certain unfair practices in the sale of financial products with reverse mortgages;
Improve the disclosures that explain a consumer’s right to rescind certain mortgage transactions and clarify the responsibilities of the creditor if a consumer exercises the right; and
Ensure that consumers receive new disclosures when the parties agree to modify the key terms of an existing closed-end mortgage loan.
The comment period ends 90 days after publication of the proposal in the Federal Register, which is expected shortly.