The Consumer Financial Protection Bureau (CFPB) has published a “final rule” setting new Truth in Lending Act (TILA) regulations — but only an interim final rule.
The new TILA interim final rule is about the same as the existing TILA final rule, or Regulation Z, except that the new version replaces references to the Federal Reserve Board and the board’s website with references to the CFPB and the CFPB website.
“Notably, this interim final rule does not impose any new substantive obligations on regulated entities,” CFPB officials say in a preamble.
The CFPB is issuing the interim final rule to implement provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act that require it to revise the Fed’s Regulation Z, which implements the federal Truth in Lending Act (TILA).
The Dodd-Frank Act also created the CFPB. The CFPB started its life operating inside the U.S. Treasury Department but is officially an arm of the Federal Reserve Board.
Fed officials decided in February to let the CFPB take charge of revising Regulation Z.
Regulation Z now prohibits a creditor from making a higher-priced mortgage loan without regard to the consumer’s ability to repay the loan.
The Fed released a proposed TILA rule that would expand the scope of the ability-to-repay requirement to cover any consumer credit transaction secured by a dwelling, excluding niche market credit arrangements, such as timeshare plans and reverse mortgages.