The CFPB announced that it finalized a rule creating mortgage disclosure forms that integrate the requirements of the Real Estate Settlement Procedures Act and the Truth in Lending Act. The final rule creates two forms: the loan estimate and the closing disclosure. The Dodd-Frank Act required the CFPB to promulgate rules to integrate certain disclosures under TILA and RESPA. Under the final rule, the loan estimate must be provided within 3 business days of the application. The closing disclosure must be provided at least business 3 days before the scheduled closing. Notably, among other things, the final rule amends the definition of “application” for purposes of triggering the loan disclosure. The amended definition of “application” removes the seventh catchall factor that was adopted by HUD. In particular, the definition of application includes six pieces of information: (1) the consumer’s name, (2) income, (3) social security number, (4) property address, (5) estimate of the value of the property, and (6) the mortgage loan amount sought. The rule is effective August 1, 2015.
Alert November 26, 2013