Kroll Bond Rating Agency added its voice to the chorus of credit rating agencies downplaying the risks of mortgages that fail to comply with new consumer disclosure rules.

The TILA-RESPA Integrated Disclosure Rule, which took effect in October, was intended to simplify the disclosure of mortgage terms and to give consumers a sufficient window of time to understand them, in order to make an informed borrowing decision.  But compliance is proving so difficult that it is having a chilling effect on the market for mortgage bonds; investors are concerned about their potential liability for purchasing loans that fail to comply.

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