On Tuesday, May 26, 2015, the CFPB and the Federal Reserve Board hosted the fifth and final webinar on the TILA-RESPA Integrated Disclosures Rule, which has a proposed effective date of October 3, 2015. The webinar reviewed common questions that the CFPB has received about the new rules. Listen to the recording and download the slides.

General Questions

Question: Can a creditor review detailed written documentation of income and assets prior to delivering a Loan Estimate?

Answer: Yes. A creditor is prohibited from requiring verifying information before providing the Loan Estimate. However, if a consumer voluntarily provides information, the rule does not prohibit a creditor from accepting and reviewing it. Creditors can continue to provide prequalifications and preapprovals without obtaining all six items of the application.

Question: Does the new definition of “application” apply to HELOCs?

Answer: No, it does not apply to HELOCs. The TRID rule does not change the definition of “application” for open-end credit.

Question: Can the disclosure be completed by hand printing?

Answer: Yes. Creditors are not required to type the disclosures.

Question: What constitutes third-party charges that are not otherwise disclosed?

Answer: These are charges that are not disclosed on the Loan Estimate such as loan-payoffs, tax liens, credit card charges, and any charges that are not fully known to the creditor at the time the Loan Estimate is provided.

Question: How should a creditor disclose terms in a single-close construction-to-permanent loan transaction?

Answer: The Loan Estimate and Closing Disclosure are governed by Regulation Z and its commentary, and under the current version of Regulation Z, creditors have a choice on how to disclose transactions as either a single transaction or two separate transactions.

Question: If there is a valid changed circumstance or a borrower requested change that triggers another third-party service that the creditor permits the consumer to shop for, should the list of service providers be updated and redisclosed, or is the written list of service providers required to be provided only once upon the initial Loan Estimate?

Answer: A creditor may update and redisclose the list of service providers.

Question: In a scenario where the creditor’s estimate of closing costs changes, but the prior estimate remains “in good faith,” is the creditor prohibited from providing a revised disclosure?

Answer: No, the rule does not prohibit the creditor from issuing revised disclosures.

Question: The current HUD-1 has a comparison chart to show the applicable tolerance levels and how the charges compare. Where is the equivalent chart on the Closing Disclosure?

Answer: There is no chart on the Closing Disclosure. The creditor is responsible for tracking it off-sheet to ensure that the charges do not exceed the applicable tolerances.

Question: If the owner’s title policy disclosed on the Closing Disclosure is not the same amount of the premium quoted by the title underwriter, how does a creditor show that a seller has agreed to pay for the owner’s title insurance?

Answer: The CFPB has mandated that title insurance be disclosed as a separate item. Consumers can find more information about title insurance in the “Your Home Loan Toolkit.”

Information about the “Your Home Loan Toolkit”

Creditors are required to deliver or place the “Your Home Loan Toolkit” in the mail not later than three business days after the consumer’s application is received. It is not required for refinance transactions, closed-end loans secured by a subordinate lien, or reverse mortgages. The CFPB is developing a Spanish-language version and will publish it in the Federal Register when it is released.

Question: Can market participants place their logo on the Toolkit cover?

Answer: Yes.

Question: If a creditor makes the toolkit available on its website, does that satisfy the rule’s delivery requirement?

Answer: No.