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Tuesday, October 14, 2014

ABA Wins Fixes to TILA-RESPA Mortgage Disclosures

In response to feedback from ABA, bankers and other industry stakeholders, the Consumer Financial Protection Bureau on Friday proposed two changes to its TILA-RESPA integrated mortgage disclosure requirements, which take effect on Aug. 1, 2015.

The first change would give creditors one business day to issue a revised version of the new Loan Estimate form after locking in a customer’s interest rate, instead of the previous same-day requirement. Without additional time to issue the revised form, creditors might have locked in rates only before noon on any given day.

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 addition to these ABA-advocated changes, the bureau also proposed several technical changes to the TILA-RESPA and loan originator rules. Comments on the proposed changes are due Nov. 10.

Read the proposed rule.

For more information, please contact ABIA's Kevin McKechnie.