CFPB Proposes Two Amendments to Integrated Mortgage Disclosure Rules
On October 10, the Consumer Financial Protection Bureau (CFPB) issued proposed amendments to its Truth in Lending-Real Estate Settlement Procedures Act integrated mortgage disclosure rule (mortgage rule).
The mortgage rule changes the existing mortgage disclosure requirements and mandates the usage of a new loan estimate and loan closing disclosure starting August 1, 2015.
The CFPB’s proposed amendments would change the loan estimate requirements of the mortgage rule in two relatively minor ways. First, financial institutions would have more time to provide consumers with loan estimates after a consumer locks a floating interest rate. The current mortgage rule requires the loan estimate to be provided the same day, while the proposal would permit the loan estimate to be provided the next business day.
The second proposed change relates to construction loans. It would allow financial institutions to include language on the loan estimate informing consumers that they may receive a revised loan estimate for the construction loan if it is expected to take more than 60 days to settle.
Comments on the proposal are due November 10, 2014.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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