A LOOK AT THE CONSUMER FINANCIAL PROTECTION BUREAU’S TILA RULE REGARDING APPRAISALS FOR HIGHER-PRICED MORTGAGE LOANS

Sanford Shatz¹

Sanford Shatz Sanford Shatz is Of Counsel to McGlinchey Stafford’s Irvine, CA office where he specializes in commercial and mortgage-related litigation and compliance issues. He is a member of the California State Bar’s Consumer Financial Services Committee and the Chair of the American Bar Association’s Housing Finance Subcommittee.

I. Introduction and Overview

The Truth in Lending Act² ("TILA") seeks to promote the informed use of consumer credit by requiring disclosures about its costs and terms. Where the loan is secured by the consumers’ home, TILA requires additional disclosures and permits consumers to rescind certain transactions involving their principal dwelling.³ When the financial crisis hit and many consumers found that their home values had fallen below the amount owing on their mortgages, Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"),⁴ in part, to strengthen the disclosures provided to consumers and to protect consumers and creditors from fraud.