WASHINGTON (8/14/09)--CU Members Mortgage has warned that recent changes to Truth in Lending disclosures that would modify disclosures for closed-end mortgage loans and home equity lines of credit (HELOCs) will “greatly affect the mortgage loan process.” These changes may “reflect negatively” on organizations that are not trained nor fully prepared for the new regulatory changes, according to the Dallas-based mortgage company. The Federal Reserve recently proposed changes to Regulation Z (Truth in Lending), including a revision that would add some fees and settlement costs to annual percentage rate calculations. Regulation Z would also require lenders to provide a list of suggested questions for borrowers to ask about a mortgage. Lenders would show borrowers how the interest rate of their loan compares with those given to other borrowers with excellent credit and would provide borrowers with information on how their payment schedule could change if they are signed on to an adjustable rate mortgage. Lenders also would need to notify borrowers of a change in their monthly payment at least 60 days in advance and would be required to provide a “final disclosure,” dictating many terms of the mortgage, within three days of closing. The Fed is currently accepting comments on this proposal, and will continue to do so until late October. The Credit Union National Association is analyzing these proposals and will post a regulatory comment call on the proposals soon. For prior coverage of the proposal, use the resource link.