The Mortgage Bankers Association is disappointed that the Consumer Financial Protection Bureau has not provided an explicit temporary safe harbor for lenders who have made a good-faith effort to implement new disclosures.
The industry has pushed hard for protection from legal liability if lenders make mistakes on the mortgage disclosures, but regulators have stopped short of providing that.
"In my 29 years in the mortgage industry, I don't know of any one event that has required more change, more upfront work than" the Truth-in-Lending and Real Estate Settlement Procedures Act integrated disclosures, said Bill Cosgrove, the chairman of the MBA.
The CFPB and other regulators said Thursday that examiners would take into account good-faith efforts to implement the new disclosures but could not give guarantees they wouldn't take enforcement actions.
Despite the disappointment, Cosgrove expects the CFPB will be even handed and treat lenders fairly.
"I do feel comfortable that Richard Cordray and his staff fully understand and appreciate and respect the stress this is putting on the whole real estate finance system," he said.
