Docs on Demand

06/05/2020

The CFPB issued three items related to the LIBOR Transition for the sunset of LIBOR which is expected to be discontinued after 2021.

1. Proposed Rule
2. Additional FAQ Guidance
3. CHARM Booklet Revisions

Proposed rule – Amendments to Facilitate the LIBOR Transition (Regulation Z):
https://www.consumerfinance.gov/policy-compliance/rulemaking/rules-under-development/amendments-facilitate-libor-transition-regulation-z/

LIBOR Transition FAQs:
https://files.consumerfinance.gov/f/documents/cfpb_libor-transition_nprm-frequently-asked-questions.pdf

Notice of Availability of Revised Consumer Information Publication (CHARM Booklet):
https://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/notice-availability-revised-charm-booklet-publication/

Fast Facts for 2020 LIBOR Transition Rule:
https://files.consumerfinance.gov/f/documents/cfpb_libor-transition_nprm-fast-facts.pdf

The Bureau is proposing to amend Regulation Z, which implements the Truth in Lending Act, generally to address the sunset of LIBOR, expected to be discontinued after 2021.

03/27/2020

CFPB Provides Flexibility During COVID-19 Pandemic

The Bureau has issued several statements addressing needed flexibility to enable financial companies to work with customers in need as they respond to the COVID-19 pandemic. The Bureau is postponing some data collections from industry on Bureau-related rules to allow companies to focus on responding to consumers in need and making changes to its supervisory activities to account for operational challenges at regulated entities.

Press release announcement and copies of the Bureau statements here:
https://www.consumerfinance.gov/about-us/newsroom/cfpb-provides-flexibility-during-covid-19-pandemic/

Statement on Supervisory and Enforcement Practices Regarding Quarterly Reporting Under the Home Mortgage Disclosure Act:https://files.consumerfinance.gov/f/documents/cfpb_hmda-statement_covid-19_2020-03.pdf

Statement on Bureau Supervisory and Enforcement Response to COVID-19 Pandemic:https://files.consumerfinance.gov/f/documents/cfpb_supervisory-enforcement-statement_covid-19_2020-03.pdf

08/06/2019

The CFPB has published frequently asked questions on providing Loan Estimates to consumers. Following is a link to the FAQs along with the five questions answered.
TILA-RESPA Integrated Disclosure FAQs: https://www.consumerfinance.gov/policy-compliance/guidance/tila-respa-disclosure-rule/tila-respa-integrated-disclosure-faqs/

Providing Loan Estimates to Consumers

1. When is a creditor required to provide a Loan Estimate to a consumer?

2. Can creditors require consumers to provide additional information (other than the six pieces of information that constitute an application under the TRID Rule) in order to receive a Loan Estimate?

3. Can creditors require consumers to submit verifying documents in order for the consumer to receive a Loan Estimate?

4. Is the requirement to provide a Loan Estimate triggered if the consumer submits the six pieces of information in order to receive a pre-approval or pre-qualification letter?

5. What if a creditor needs to collect additional information (other than the six pieces of information that constitute an application for purposes of the TRID Rule) or verifying documents to process a pre-approval or pre-qualification request?

Frequently asked questions (FAQs) on the TILA-RESPA Integrated Disclosure (TRID) rule, also known as Know Before You Owe (KBYO).

06/03/2019

The CFPB has published the first set of Frequently Asked Questions on the TRID Rule as it applies to construction loans. Following is a link to the FAQs along with the two questions answered.

TILA-RESPA Integrated Disclosure FAQs: https://www.consumerfinance.gov/policy-compliance/guidance/tila-respa-disclosure-rule/tila-respa-integrated-disclosure-faqs/

Construction Loans

QUESTION 1. Are construction-only loans or construction-permanent loans covered by the TRID Rule?

QUESTION 2. Are there special disclosure provisions for construction-only or construction-permanent loans under the TRID Rule?

Frequently asked questions (FAQs) on the TILA-RESPA Integrated Disclosure (TRID) rule, also known as Know Before You Owe (KBYO).

05/15/2018

The CFPB issued on April 26, 2018 a final rule (2018 TILA-RESPA Rule) addressing when a Closing Disclosure may be used to reset tolerances under the TILA-RESPA Integrated Disclosure Rule. The 2018 TILA-RESPA Rule is effective 30 days after its publication in the Federal Register.

Currently, a creditor may only use a Closing Disclosure to reset tolerances if there are fewer than four business days between the time the creditor is required to provide the Closing Disclosure reflecting the revised estimate and consummation. The 2018 TILA-RESPA Rule removes this four business day limit on a creditor’s ability to reset tolerances with a Closing Disclosure. Thus, if a changed circumstance or another triggering event has occurred, the 2018 TILA-RESPA Rule permits a creditor to reset tolerances with either an initial or corrected Closing Disclosure regardless of the number of days between consummation and the date the Closing Disclosure reflecting the revised estimate is required to be provided to the consumer. The creditor must provide the consumer with the Closing Disclosure reflecting the revised estimate at or before consummation and within three business days of receiving information sufficient to establish that the changed circumstance or other triggering event has occurred. Additionally, the consumer must still receive an initial Closing Disclosure at least three business days prior to consummation. A new three-day waiting period is only required for a corrected Closing Disclosure if the APR becomes inaccurate, a prepayment penalty is added, or the loan product changes from the loan product previously disclosed.

Executive Summary of the 2018 TILA-RESPA Rule:
https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/tila-respa-disclosure-rule/

Final 2018 TILA-RESPA Rule:
https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/federal-mortgage-disclosure-requirements-under-truth-lending-act-regulation-z/

The Bureau is amending Federal mortgage disclosure requirements under RESPA and TILA that are implemented in Regulation Z.

07/11/2017

CFPB issues 2017 TILA-RESPA final rule and Executive Summary

The CFPB has issued on July 7, 2017 a final rule (2017 TILA-RESPA Rule) amending and clarifying certain mortgage disclosure provisions implemented in Regulation Z. To support implementation of the 2017 TILA-RESPA Rule, the Bureau has issued an Executive Summary (link below).

Included among other topics in the Executive Summary:
• Partial Payment Disclosures and Escrow Closing Notices
• Loans Secured by Cooperatives
• Loans to Certain Trusts
• Partial Exemption for Certain Housing Assistance Loans
• Construction Loans
• Simultaneous Subordinate Lien Loans
• Tolerances for Total of Payments Disclosure
• Good Faith and Revised Disclosures
• Decimal Places and Rounding
• Calculating Cash to Close
• Other Disclosures in Loan Estimates and Written Lists of Providers
• Other Disclosures in Closing Disclosures
• Sharing Disclosures with Various Parties During the Origination Process
• Technical Corrections and Clarifications

The CFPB also issued on July 7, 2017 a notice of proposed rulemaking regarding when a creditor may use a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance. The 2017 TILA-RESPA Rule does not make changes or clarifications related to this issue. Comments on the proposal are due 60 days after it is published in the Federal Register.

2017 TILA-RESPA Final Rule on the CFPB’s website:
https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/amendments-federal-mortgage-disclosure-requirements-under-truth-lending-act-regulation-z/

Executive Summary of 2017 TILA-RESPA rule (under Quick references):
https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/tila-respa-disclosure-rule/

Issued Proposed Rule on the CFPB’s website:
https://www.consumerfinance.gov/policy-compliance/rulemaking/rules-under-development/amendments-federal-mortgage-disclosure-requirements-under-truth-lending-act-regulation-z-2017/

The Bureau is making various amendments to federal mortgage disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act that are implemented in Regulation Z.

12/02/2016

The CFPB published on November 30, 2016 an updated version of the Mortgage Servicing Small Entity Compliance Guide. The updated guide incorporates amendments made to mortgage servicing provisions in Regulation X and Regulation Z by the 2016 Mortgage Servicing final rule.

Mortgage Servicing implementation webpage:

Our vision is a consumer finance marketplace that works for American consumers, responsible providers, and the economy as a whole.

08/19/2016

CFPB Publishes Resources for HMDA Filers to help Financial Institutions Report HMDA Data Collected In Or After 2017
Beginning with data collected in 2017, financial institutions will file their HMDA data with the Consumer Financial Protection Bureau rather than the Federal Reserve Board. On July 13, 2016, the FFIEC and HUD published documents on Resources for HMDA Filers to help financial institutions report Home Mortgage Disclosure Act (HMDA) data collected in or after 2017.

Also, the CFPB has made available on its website a webinar that provides an overview of the HMDA final rule and addresses institutional and transactional coverage, the data disclosure and submission process, as well as some key dates found in the final rule. Also available, is a HMDA transactional coverage chart that may be used when determining whether a transaction is reportable under HMDA.

Resources for HMDA Filers: http://www.consumerfinance.gov/data-research/hmda/for-filers

CFPB HMDA Webinar and Implementation Resources: http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/hmda-implementation/

The FFIEC and HUD have published the following resources for financial institutions required to file Home Mortgage Disclosure Act (HMDA) data:

05/25/2016

The CFPB has published on its website annotated versions of the Loan Estimate and Closing Disclosure that provide citations to the disclosure provisions in Chapter 2 of the Truth in Lending Act (TILA) referenced in the preamble of the Integrated Mortgage Disclosure final rule, 78 Fed. Reg. 79,730 (Dec. 31, 2013).

Following are direct links to the documents:

Loan Estimate:http://files.consumerfinance.gov/f/documents/201605_cfpb_loan-estimate-with-truth-in-lending-act-disclosure-citations.pdf

Closing Disclosure:http://files.consumerfinance.gov/f/documents/201605_cfpb_closing-disclosure-with-truth-in-lending-act-disclosure-citations.pdf

08/10/2015

The CFPB released on August 6, 2015 updated TILA-RESPA implementation materials to bring them into alignment with the new effective date of October 3, 2015. This includes an updated Small Entity Compliance Guide for the TILA-RESPA Integrated Disclosures Rule, as well as updates to the TILA-RESPA Integrated Disclosures Guide to the Loan Estimate and Closing Disclosure Forms, and the TILA-RESPA Integrated Disclosures timeline example Here's a link to the updated guides, the updated timeline, and other resources: http://www.consumerfinance.gov/regulatory-implementation/tila-respa/

TILA-RESPA Integrated Disclosure rule implementation Email updates about mortgage rule implementation News Effective date of Know Before You Owe Mortgage Disclosure rule The CFPB has issued a proposed amendment to delay the effective date of the Know Before You Owe rule until October 3, 2015. »Che…