While the Consumer Financial Protection Bureau (CFPB) has been developing and testing the combined TIL/RESPA forms a number of issues have come to their attention. Following are a few items in their crosshairs:

  • Many lenders and mortgage brokers provide consumers with preliminary estimates of loan terms and settlement costs that are not mandated by TILA or RESPA. The CFPB is considering whether to require that these preliminary estimates carry a disclaimer that tells the consumer that the document is not the integrated Loan Estimate required by TILA and RESPA.
  • Under the current rules, when a lender provides a consumer with an estimate of the cost of its own services under RESPA, the actual cost cannot be higher than the estimate unless there is a valid change of circumstances. The CFPB is considering a proposal to apply the same limitation to estimates of services provided by the lender’s affiliates or by companies the lender requires the consumer to use.
  • Under the current rules, consumers typically receive a disclosure with some of their final loan terms and costs three business days before closing on the loan. Other costs are finalized on the day of closing. The CFPB is considering a proposal that would generally require delivery of the integrated Settlement Disclosure stating the consumer’s final loan terms and costs at least three business days before closing, although some flexibility may be provided.