ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release August 16, 2006 #06-45
E-mail: [email protected]

ACB SUPPORTS MODERNIZING MORTGAGE DISCLOSURES BUT URGES THAT AMENDMENTS APPLY TO ALL LENDERS

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WASHINGTON, D.C. — America’s Community Bankers has told the Federal Reserve Board that it supports modernizing mortgage disclosures to include alternative mortgage products, but urged that the disclosure requirements apply to all mortgage lenders, not just banks.

ACB said it strongly supports enhancing consumers’ ability to shop for, obtain and understand the terms of a mortgage loan. “We believe these goals may be accomplished by comprehensive reform of TILA [Truth in Lending Act] through the rulemaking process so that any new or different disclosure requirements apply to all mortgage lenders,” ACB said in its comment letter on reforming the mortgage lending process. The Fed’s Regulation Z implements TILA.

The Fed was urged to work with the other federal agencies to ensure that the requirements of other consumer protection laws are met and are not in conflict, especially with the Department of Housing and Urban Development’s Real Estate Settlement Procedures Act rule, ACB said.

ACB commended the Fed’s initiative to include consumers and lenders in a study to develop and test consumer disclosures. “We believe that it is critical for consumers to understand completely the terms of all loans made to them,” adding: “Innovation in mortgage products has enabled more Americans than ever before to build wealth through homeownership.”

ACB reiterated its position that the pending guidance on nontraditional mortgage products should be implemented by amending Regulation Z through the rulemaking process.

Click here for comment letter.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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