The CFPB is proposing changes to the TILA-RESPA Integrated Disclosure Rule issued last year. Commonly referred to as the “Know Before You Owe Rule,” it clarified the disclosure process so that borrowers could have a much clearer understanding of all fees and related expenses involved in a loan.
This week, two changes to that rule have been proposed:
- Rather than requiring lenders to provide Loan Estimates on the same day that
borrowers lock on a floating interest rate, they would be given until the next business day. - An additional field would be provided to allow lenders to include language about offering borrowers revised Loan Estimates on construction loans that take longer than 60 days to close.
The effective date of the new rules remains at August 1st, 2015. Visit CFPB for more details on the proposed changes.
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