Some background on what led to the rule

On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) was signed into law. Under the law, a new federal regulator was created – the Consumer Financial Protection Bureau (CFPB).

The CFPB is an independent bureau housed in the Federal Reserve charged with regulating a wide range of consumer financial products and services including credit cards, payday loans, reloadable gift cards, mortgage servicing and mortgage origination.

Under Dodd-Frank, the CFPB is mandated to propose regulations integrating the consumer disclosures required under RESPA and the Truth-in-Lending Act (TILA). This mandate is what led to the proposed rule released on July 9, 2012.