CFPB Proposes Mortgage Disclosure, Rescission Rule Updates for Feedback
CFPB opened a comment period on proposed updates to mortgage disclosure and rescission rules.
Why it matters: These updates could alter compliance requirements for mortgage lenders and in-house counsel by refining borrower disclosure obligations and rescission timing under TILA and RESPA.
- CFPB published the proposal on July 10, 2026, with comments due by September 8, 2026.
- Proposed rule changes aim to clarify mortgage disclosures and expand explanations of borrower rescission rights, particularly timing and conditions.
- The updates affect provisions under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).
- CFPB intends to enhance consumer understanding of mortgage costs and cancellation rights to reduce confusion and litigation risk.
On July 10, 2026, the Consumer Financial Protection Bureau (CFPB) announced a proposal to revise the mortgage disclosure and rescission rules that govern consumer mortgage lending.
The proposal targets amendments to parts of the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) to enhance transparency about mortgage loan costs and consumer rights to rescind (cancel) certain mortgage transactions within a specified period.
CFPB Director Rohit Chopra explained the revisions aim to "provide clearer disclosures to help borrowers understand the full scope of their rescission rights and the timing involved, reducing confusion and the potential for inadvertent forfeiture of those rights."
The rescission right allows consumers to cancel certain mortgage refinancing or home equity loans within a three-day window after closing. The proposed amendments would clarify technical requirements around disclosures provided before and during this period.
The CFPB has set a public comment period that ends on September 8, 2026. Industry representatives, legal advisors, and consumer advocates are encouraged to submit feedback. Legal and compliance teams within mortgage lending firms should review the proposed text closely, as adjustments could require updates to disclosure processes, training, and compliance monitoring.
This regulatory initiative aligns with the CFPB's broader effort to improve fairness and consumer protections in mortgage lending by ensuring disclosures are both accessible and actionable.
By the numbers:
- July 10, 2026 — CFPB proposal publication date
- September 8, 2026 — Deadline for public comment submissions
- 3 days — Consumer rescission period after mortgage closing
Yes, but: While the proposed rules aim to improve clarity, some industry stakeholders may find implementation complex due to operational adjustments in lending workflows.
What's next: CFPB will review submitted comments after September 8, 2026, before finalizing the mortgage disclosure and rescission amendments, expected in early 2027.