Banking and Finance Law Daily Wrap Up, MORTGAGES—CFPB seeks input on mortgage disclosure, rescission, and reverse mortgage rules, (Jul 8, 2026)

By Shashi Kant, B.A. LL.B., LL.M.

The RFI asks whether changes to TRID, rescission, and reverse mortgage disclosure rules could reduce burdens and promote access to mortgage credit.

The Consumer Financial Protection Bureau has issued a request for information (RFI) seeking public comment on potential regulatory changes intended to reduce unwarranted regulatory burdens and promote access to mortgage credit. The CFPB is requesting information on industry and consumer burdens related to TILA-RESPA integrated disclosures (TRID), the Truth in Lending Act right of rescission, and reverse mortgage disclosures. Comments are due Aug. 10, 2026.

Mortgage credit order. The RFI follows Executive Order 14393, “Promoting Access to Mortgage Credit,” issued on Mar. 13, 2026. The order stated that statutory and regulatory changes have increased mortgage origination compliance costs, contributed to a decline in community bank participation in mortgage lending, and reduced access to credit for some creditworthy borrowers. The order directed the CFPB to consider mortgage-related regulatory changes, including tailoring requirements for smaller banks, replacing TRID timing rules with a materiality-based standard, and exempting rate-and-term refinancing, including cash-out refinancing, from rescission rights. The order also called for broader measures to support community bank participation in mortgage lending and reduce mortgage costs (see Banking and Finance Law Daily, Mar. 16, 2026). The CFPB said it is issuing the RFI consistent with the executive order and with its statutory objective of identifying and addressing outdated, unnecessary, or unduly burdensome regulations.

TRID timing and tolerances. The CFPB is seeking information on whether TRID timing requirements materially affect consumers’ ability to obtain mortgage credit, increase costs, or complicate particular transaction types. The RFI asks whether Loan Estimates or Closing Disclosures could be provided earlier in the origination process to satisfy statutory waiting periods while reducing closing delays. The CFPB also asks whether there are ways to reduce the need for revised disclosures while still providing consumers with timely settlement-cost updates. It seeks comment on whether materiality-based standards could replace or supplement timing rules, including whether such standards could improve administrative efficiency while preserving consumer clarity and reducing closing delays. The CFPB also requests comment on TRID tolerance thresholds, including whether adjustments could improve loan execution and lower consumer costs. The RFI notes prior comments that transfer taxes and third-party appraisal fees can be difficult to estimate within three business days of application. The CFPB also asks whether additional guidance is needed on changed circumstances and revised estimates.

Rescission rights. The RFI seeks comment on the relationship between the TRID three-business-day pre-consummation waiting period and TILA’s three-business-day post-consummation rescission period for certain transactions secured by a consumer’s home. The CFPB asks whether the combined waiting periods unduly delay loan funding for refinance transactions and how the CFPB could adjust rescission or TRID waiting periods. The RFI notes that TILA generally gives consumers a three-day right to rescind most transactions in which the home is taken as collateral, other than purchase-money transactions. During the rescission period, funds generally may not be disbursed, services may not be performed, and materials may not be delivered until the period expires and the creditor is reasonably satisfied that the consumer has not rescinded.

Small banks, construction loans, and digital processes. The CFPB asks whether the TRID rule should be tailored for small banks and credit unions and whether such changes could lower costs for originators, creditors, or consumers. The RFI also asks whether changes or clarifications specific to construction loans could improve consumer clarity, reduce costs, or promote access to credit for residential construction. The CFPB also seeks comment on whether additional guidance regarding electronic or digital forms and signatures would promote their use and lower costs. The RFI asks whether the disclosure forms themselves should be modified to improve consumer clarity and loan execution, and whether potential changes could affect pricing, liquidity, or demand for mortgages, mortgage-backed securities, mortgage servicing rights, or other mortgage-backed capital markets instruments.

Reverse mortgages. The CFPB also requests information on reverse mortgage disclosures. The RFI states that reverse mortgages are excluded from TRID and are instead subject to overlapping TILA and RESPA disclosure requirements that are not tailored to reverse mortgage products. The CFPB asks whether integrated and tailored reverse mortgage disclosures would help consumers make more informed decisions. It also asks whether changes to the total annual loan cost, or TALC, table would produce more reasonable and accurate cost estimates. The CFPB seeks comment on whether a table showing how a reverse mortgage balance grows over time in dollar amounts would better help consumers evaluate costs and benefits. The RFI further asks whether consumers would benefit from a tailored disclosure explaining how reverse mortgages work and identifying terms and risks important to consumers, instead of existing generic brochures and booklets.

RegulatoryActivity: BankingFinance BankingOperations CFPB CommunityDevelopment ConsumerCredit FedTracker GCNNews Loans Mortgages RESPA TruthInLending