TILA-RESPA updates would increase time to revise Loan Estimate
WASHINGTON (10/14/14)--Two changes to the upcoming Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) integrated disclosures rule have been proposed by the Consumer Financial Protection Bureau (CFPB). The rule will become effective Aug. 1, 2015.
The first modification would give creditors extra time to provide consumers with a revised Loan Estimate form after the consumer has locked in their floating interest rate. The current rule requires creditors to provide the revised form the same day.
According to the CFPB, feedback from stakeholders has led the agnecy to believe the short turnaround may be challenging for creditors, particularly if consumers lock in their estimate late in the day or after business hours.
The revised rule would give creditors until the next business day to provide the revised Loan Estimate form.
The second change is an addition to the Loan Estimate form, relating to construction loans that can take longer than 60 days to settle. It would allow creditors to include language informing consumers that a revised Loan Estimate form may be issued for a construction loan that is expected to take more than 60 days to settle.
Comments on the changes are due by Nov. 10.
Use the resource link below to access the proposal.