The Truth in Lending Act (TILA) has changed again, and here's what you need to know.

The changes result from the Mortgage Disclosure Improvement Act enacted in July 2008, and are effective July 30, 2009. Mortgage lenders are required to comply with the new rules for all applications received on or after July 30, 2009 for all dwelling-secured consumer loans. The changes apply to all dwelling-secured loans, and are not limited to loans secured by the consumer's principal dwelling. Under the new rules:

  1. Creditors must give consumers transaction-specific cost disclosures no later than three days after receiving an application for a closed-end loan secured by a consumer's principal dwelling.
  2. The disclosures must be provided before the consumer pays any fee, other than a fee for obtaining the consumer's credit history.
  3. The disclosures must contain the following statement: "You are not required to complete this agreement merely because you have received these disclosures or signed a loan application."
  4. Consummation of the loan may occur on or after the seventh business day after the delivery or mailing of the disclosures.
  5. If the annual percentage rate provided in the good faith estimate changes beyond the tolerance levels in Regulation Z, the lender must provide corrected disclosures which the borrower must receive at least three business days before consummation of the loan. The borrower may waive the waiting periods in order to expedite consummation to meet a bona fide personal financial emergency.