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Thursday, February 19, 2015

ABA Wins Longer Loan Estimate Disclosure Window

After ABA requested three business days for creditors to issue revised mortgage disclosures after locking in a customer’s interest rate, the Consumer Financial Protection Bureau granted the request. The bureau is today issuing a final rule allowing a three-business-day window to revise a Loan Estimate form, longer than the one-day window proposed in October and the same-day requirement included in the original TILA-RESPA mortgage disclosure rule.

In a comment letter last year, ABA expressed appreciation for the proposal to relax timing requirements but explained why a 24-hour turnaround would be very difficult.

The bureau’s final rule also added language clarifying the disclosure process for construction borrowers and making a minor origination-related modification to the TILA-RESPA Loan Estimate and Closing Disclosure forms. These changes become effective on Aug. 1, along with the broader TILA-RESPA disclosure integration rule.

Read the final rule.