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High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act (Regulation Z) and Homeownership Counseling Amendments to the Real Estate Settlement Procedures Act (Regulation X)

The CFPB issued this final rule to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act’s amendments to the Truth in Lending Act and the Real Estate Settlement Procedures Act. The final rule amends Regulation Z (Truth in Lending) by expanding the types of mortgage loans that are subject to the protections of the Home Ownership and Equity Protections Act of 1994 (HOEPA), revising and expanding the tests for coverage under HOEPA, and imposing additional restrictions on mortgages that are covered by HOEPA, including a pre-loan counseling requirement. The final rule also amends Regulation Z and Regulation X (Real Estate Settlement Procedures Act) by imposing certain other requirements related to homeownership counseling, including a requirement that consumers receive information about homeownership counseling providers.

This page contains resources to help you understand the rule and its implications.

Contents

  1. The rule
    1. Effective date
    2. Breakdown of the document’s contents
  2. Compliance guide and related information
  3. What this means for consumers
  4. Related proposals

The rule

Final rules submitted to the Federal Register

November 8, 2013: We issued an interpretive final rule and summary on the provision of lists of housing counseling agencies.
October 15, 2013: We issued an interim final rule amending certain provisions of the rule.
September 13, 2013: We issued a final rule amending certain provisions of the rule. It is based on a proposed rule issued in June 2013.
January 31, 2013: The Office of the Federal Register published this document. View the document as published in the Federal Register.
January 10, 2013: We issued the document containing this final rule. View the full document as issued.

Effective date

This rule is effective January 10, 2014.

Breakdown of the document’s contents

This document contains the following parts:

  • Preamble summarizing why we are issuing the rule, our legal authority, reasoning behind the rule, responses to comments, and analysis of the benefits, costs, and impacts of the rule
  • Regulatory text, which, when effective, will amend Regulations X and Z and can be found on page 373 in the document above
  • Official interpretations of the rules which can be found on page 396 in the document above

Compliance guide and related information

Read the Small Entity Compliance Guide to learn more about the rule in a plain language and FAQ format which makes the content more accessible for a broad array of industry constituents, especially smaller businesses with limited legal and compliance staff.


What this means for consumers

The new rule will go into effect on January 10, 2014. This summary outlines some of the ways we expect it to impact consumers who have residential mortgage loans. Download the consumer summary.


Related proposals

June 21, 2013: We issued a proposed rule with request for public comment that proposed certain amendments for several of the final mortgage rules we issued in January 2013. This proposal was published in the Federal Register on July 2, 2013. You can also review comments submitted on the electronic docket.

The Bureau issued for public comment its proposal to amend Regulation Z to implement the Dodd-Frank Act amendments to HOEPA on July 9, 2012. This proposal was published in the Federal Register on August 15, 2012.

The proposed rule and comments received are also available on the electronic docket.

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