The Federal Reserve Board is preparing to ask Congress to harmonize the Truth-in-Lending and the Real Estate Settlement Procedures acts.
In a March 31 notice, the Fed said it has concluded that it cannot streamline the two mortgage disclosure laws without congressional intervention. It asked bankers to recommend by June 30 possible legislative fixes.
As part of the 1996 thrift bailout law, Congress ordered the Fed and the Department of Housing and Urban Development to create a single disclosure format that satisfies the requirements of Truth-in-Lending and Respa. Lawmakers told the agencies to request legislation if they could not streamline the rules on their own.
The Fed said it is considering holding a public meeting or convening a working group to solicit additional comments.
Also, the Fed said it will rely on data being collected for a separate review of Regulation Z, which implements Truth-in-Lending.