The CFPB finalized ABA-advocated changes to its TILA-RESPA integrated mortgage disclosure requirements, which take effect on Aug. 1, 2015. The first change would give creditors three business days to issue a revised version of the new Loan Estimate form after locking in a customer’s interest rate.
The rule originally included a same-day requirement, which ABA was concerned would be too restrictive. In its proposed rule, the bureau put forth a one-business-day timeframe. However, ABA noted that without additional time to issue the revised form, creditors might have locked in rates only before noon on any given day. ABA sought a full three business days.
Responding to specific concerns about the longer settlement times for construction loans, the second change would add language to the Loan Estimate informing construction borrowers that they might receive a revised Loan Estimate if their loan takes more than 60 days to settle. In finalizing the rule, after ABA’s urging, the bureau provided more specific direction on the disclosure.
Read the final rule.
Read ABA’s comment letter.