The CFPB has announced two proposed changes to the Truth in Lending Act-Real Estate Settlement Procedures Act final rule.
"We're proposing to give creditors some extra time to provide consumers with revised Loan Estimates after a consumer locks a floating interest rate," Andy Arculin, regulations counsel at the CFPB, said in a Oct. 10 blog post.
Under the current rule, creditors have to give consumers a revised loan estimate on the same day they lock their interest rates.
"After considering feedback from stakeholders on this requirement, we think that such a short turnaround may be challenging for creditors that currently allow consumers to lock interest rates late in the day or after business hours," Arculin said. "This could result in creditors only allowing consumers to lock interest rates during business hours or even early in the day (e.g., before noon)."
Instead, the CFPB's proposal would let creditors provide amended disclosures to consumers on the next business day.
The bureau is also proposing a slight modification to the loan estimate form. Construction loans often take longer to settle than other loans, and the estimated charges can change when more than 60 days pass, Arculin wrote in the blog.
"Our proposal would create a space on the loan estimate form where creditors could include language informing consumers that they may receive a revised loan estimate for a construction loan that is expected to take more than 60 days to settle,' he added.
The CFPB said stakeholders are able to submit their comments on the changes by Nov. 10.
"We do not think that the proposed changes will affect the industry's ability to implement the rules on time," Arculin said.
The Aug. 1, 2015 effective date for the TILA-RESPA rule has not changed.
"We appreciate the fact that the CFPB continues to look at the final rule and address areas of concern raised by the industry which would be helpful to credit unions and consumers," Michael Coleman, NAFCU director of regulatory affairs, said.
"We will continue to discuss important issues with TILA/RESPA implementation with the CFPB and with our members," he added.
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