July 30, 2015

Compliance Blog: CFPB OK with revised loan estimates

In a NAFCU Compliance Blog post today, Senior Regulatory Compliance Counsel Brandy Bruyere discusses whether mortgage closing cost estimates offered in "good faith" can be revised and presented again to consumers for informational purposes under CFPB's Truth in Lending Act/Real Estate Settlement Procedures Act integrated disclosure rule.

Bruyere noted that many NAFCU members have asked if revised loan estimates will be prohibited. To help answer that, she reviewed CFPB's guidance as given in the bureau's last TILA/RESPA webinar.

Bruyere paraphrased the guidance offered in the webinar: "Even if the creditor determines that changed estimates remain in good faith, the rule does not prohibit the creditor from issuing an updated disclosure reflecting the changed estimates, and the creditor has the option of doing so."

She added, however, that "in that case, the updated disclosure would not impact the good faith analysis under section 1026.19(e)(3)(i-iii), and that the creditor must have a mechanism for tracking which disclosure controls for the purposes of determining good faith."

Bruyere also noted that the July NCUA Report is now available; the report focuses on the proposed changes to the member business lending rule, the extension of the interest rate ceiling through March 2017, and voluntary diversity assessment standards.

The NAFCU Regulatory Compliance team has created a collection of resources on the TILA/RESPA integrated disclosure rule, including Compliance Monitor articles and videos.