CFPB to Reopen Know Before You Owe Rulemaking

Julie C. Nichols General

Reblogged from Housing Wire – Brena Swanson

In a huge win for the industry, the Consumer Financial Protection Bureau is taking another look at the Know Before You Owe rule, answering calls to make official a lot of the informal guidance given by the bureau.

The bureau wrote a letter on Thursday to eight industry trade groups acknowledging their concerns over compliance with the Know Before You Owe mortgage disclosure forms and letting them know that the bureau has begun drafting a Notice of Proposed Rulemaking on the Know Before You Owe rule.

CFPB Director Richard Cordray states in the letter:

We do recognize that incorporating some of the bureau’s existing informal guidance, whether provided through webinar, compliance guide, or otherwise, into the regulation text and commentary, would be helpful. We also believe that there are places in the regulation text and commentary where adjustments would be useful for greater certainty and clarity. Accordingly, we have begun drafting a Notice of Proposed Rulemaking on the Know Before You Owe rule. We hope to issue the NPRM in late July and look forward to your comments on it then. The Office of Financial Institutions, along with our Regulations and Markets team, will arrange one or two meetings in late May or early June, but before the NPRM is issued, to discuss further with you the Know Before You Owe rule. In the meantime, we look forward to continuing to receive your detailed feedback on the implementation of the Know Before you Owe rule.

>> Read the full Story:

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: or contact me with any of your home loan questions.