Last October, the CFPB proposed changes to the TILA-RESPA Integrated Disclosure Final Rule first issued in November of 2013 and effective August 15, 2015. The proposed changes would have adjusted the timing requirement for giving revised disclosures when the consumer locks in the interest rate after the initial Loan Estimate disclosure has been given, corrected an omission in the original rule to allow certain language relating to new construction loans to be included on the Loan Estimate form, and required NMLSR ID numbers to be shown on the integrated disclosures, along with several technical corrections and wording changes.
Under the integrated disclosure rule as originally issued, a creditor must provide a revised Loan Estimate disclosure re-disclosing interest rate dependent charges and loan terms on the date that the interest rate is locked. The Bureau proposed to allow creditors until the next business day after the rate lock occurs to provide the re-disclosure. Fortunately, the final rule relaxes the timing requirement even further and requires that the revised disclosure be provided no later than three business days after the rate is locked, similar to the existing requirement for a revised GFE under RESPA.
A creditor is permitted to give a revised disclosure on new construction loans when settlement is expected to occur more than 60 days after the initial Loan Estimate is given, if the original disclosure states the creditor may issue revised disclosures at any time prior to 60 days before consummation. However, the rule as originally issued did not permit that statement to be included on the Loan Estimate form. The revised final rule corrects that omission. Creditors may include the statement on page 3 of the Loan Estimate under the heading "Other Considerations."
The final rule also requires that the name and NMSLR ID of both the organization and individual originator be shown on both the initial Loan Estimate and Closing Disclosure. Technical corrections include various non-substantive changes to sections of the commentary to clarify the intent of those sections.
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