The Consumer Financial Protection Bureau ("CFPB") has updated its small entity compliance guide and new mortgage disclosure form guide for its Truth in Lending Act-Real Estate Settlement Procedures Act ("TILA-RESPA") Integrated Disclosure rule. The CFPB originally published the guides to make the rule more accessible for smaller businesses, who typically have limited legal and compliance staff. The update offers additional clarifications for the loan estimate, seven-day waiting period, and revised loan estimate sections. Creditors must deliver or place in the mail a loan estimate form "no later than the third business day after receiving the consumer's application." In addition, creditors must deliver or place in the mail the loan estimate no later than the seventh business day before the consummation of the transaction. With respect to revised loan estimates, the creditor must deliver or place in the mail the revised loan estimate no later than three business days after receiving the information sufficient to establish that one of the reasons for the revision has occurred. The creditor must ensure that the consumer receives the revised loan estimate no later than four business days prior to consummation.
The rule permits consumers to modify or waive the seven business day waiting period where there is a "bona-fide personal financial emergency that necessitates consummating the credit transaction before the end of the waiting period." For example, a bona-fide personal financial emergency would be "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."
The TILA-RESPA Integrated Disclosure rule takes effect on August 1, 2015. The updated guides and other resources on the implementation of TILA-RESPA Integrated Disclosure Rule are available here.