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CFPB seeks input on overhauling reverse mortgage disclosure rules
The bureau’s request for information also targets whether reverse mortgage disclosure numbers, including the Total Annual Loan Cost table, still make sense for consumers.
HousingWire reports the Consumer Financial Protection Bureau has issued a request for information on mortgage disclosure requirements, specifically including reverse mortgages as part of a broader review of whether existing rules add compliance burden or hinder access to credit.
The CFPB said it is evaluating overlaps across RESPA and TILA disclosures, as reverse mortgage information is currently spread across multiple documents, including Truth in Lending disclosures, Good Faith Estimates and HUD-1 settlement statements. The bureau is also considering whether a unified, reverse-mortgage specific disclosure form should be created, similar to the TRID Rule approach for forward mortgages.
According to HousingWire, attorneys said the reform agenda is overdue but warned that any change could carry high TRID like implementation costs. The story also notes the CFPB is examining whether the figures used in disclosures, including the Total Annual Loan Cost table, remain appropriate.
HousingWire further reports the CFPB’s action follows a July launch of the request for information, which aligns with President Donald Trump’s executive order directing agencies to review rules that may increase lending costs or restrict credit access.