Mortgage lenders may be taken by surprise by new disclosure requirements that take effect on Oct. 1, industry observers say.

The measures, which will become part of the Truth-in-Lending Act, are mostly meant to attack unfair lending practices in high-cost mortgages by curbing some activities and requiring fuller documentation for others. The new statute applies to higher-risk second mortgages and refinancings.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.