CFPB Reminds Lenders of Changes to Mandatory Arbitration Provisions

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Posted To: MND NewsWire

The Consumer Finance Protection Agency (CFPB) reminded lenders today that new Truth in Lending Act (TILA) rules banning mandatory arbitration provisions go into effect on June 1, 2013 so all documentation for new loans should be ready to go on that date. Changes to Regulation Z amendments relating to those provisions were contained in CFPB's final rule on loan originator compensation issued last January. The changes ban "terms that require arbitration or any other non-judicial procedures to resolve any controversy or settle any claims arising out of the transaction" for any closed in loan secured by a dwelling. Loans closed before June 1 or for which applications were received after that date are not covered by the new rule , but all lenders must make sure that all loan documents for loans...(read more)

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Source: http://www.mortgagenewsdaily.com/05172013_cfpb_dodd_frank_rules.asp

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