Industry NewsMortgage

Fed may ban loan-originator incentives

Overhaul of TILA loan disclosures also on tap
Published on Jul 28, 2009

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by CareyBot

The Federal Reserve Board is proposing a ban on incentive payments to mortgage originators that are based on a loan's interest rate or other terms, and revisions to loan disclosures provided to consumers that would include factoring in the cost of settlement services such as title insurance.

The Fed says its proposed changes to Truth in Lending Act (TILA) loan disclosure forms would make them more compatible with another set of disclosures mandated by the U.S. Department of Housing and Urban Development under the Real Estate Settlement Procedures Act (RESPA).

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