WASHINGTON (9/9/14)--The Consumer Financial Protection Bureau (CFPB) has released an update to the compliance guide for its Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) Integrated Disclosure rule.
The original document, a guide designed to make the rule more accessible for smaller businesses with limited legal and compliance staff, was published by the bureau in April. This version features updated information and clarifications in several sections.
The update offers additional clarifications for the loan estimate and seven-day waiting period sections. Creditors are responsible for placing in the mail, or delivering, the loan estimate form "no later than the third business day after receiving the consumer's application."
The estimate must also be placed in the mail or delivered no later than the seventh business day before the consummation of the transaction, and the creditor is responsible that the loan estimate and its delivery meet all content, delivery and timing requirements stated in the rule.
A consumer may modify or waive the seven business day waiting period after receiving the loan estimate if the consumer has a "bona-fide personal financial emergency that necessitates consummating the credit transaction before the end of the waiting period," according to the rule.
A "bona fide personal financial emergency" is determined by the facts surrounding the situation. The bureau gives an example of "the imminent sale of the consumer's home at foreclosure, where the foreclosure sale will proceed unless loan proceeds are made available to the consumer during the waiting period."
In order for the waiting period to be waived or modified, the consumer must give the creditor a dated written statement describing the emergency, specifically modifies or waives the waiting period and is signed by all consumer primarily liable for the legal obligation.
The TILA-RESPA rule will become effective Aug. 1, 2015.
Use the resource link below to access the rule's compliance guide.