Loan Estimate Preparation Requirements
Learn to identify and recognize the content and format of the loan estimate.
In 2013, the Consumer Financial Protection Bureau (CFPB) published a final rule implementing the single, integrated disclosure for certain residential mortgage loan transactions, which includes mortgage loan disclosure requirements under TILA and Sections 4 and 5 of RESPA (or the TILA-RESPA Integrated Disclosure Rule, or TRID). TRID disclosures became effective on and after October 3, 2015, and are applicable to covered closed-end mortgage loans. Regulation Z provides integrated forms and imposes timing and related disclosure requirements for mortgage loans subject to its provisions. On loans covered and subject to the integrated disclosure provisions, a creditor must provide good faith estimates of the loan estimate disclosures for information on the content, form, and format of the disclosure. The creditor generally must deliver or place in the mail the loan estimate no later than three business days after receiving the consumer’s application and no later than seven business days before consummation. Generally, the creditor is responsible for ensuring that the loan estimate and its delivery meet the rule’s content and timing requirements. If a mortgage broker receives a consumer’s application, the mortgage broker may provide the loan estimate to the consumer on the creditor’s behalf. If it does so, the mortgage broker must comply with all requirements of the rule, as well as the three-year record retention. This topic will address the requirement of the content and titling of the delivery of the loan estimate.
• You will be able to describe which transaction TILA applies to and which transactions require a loan estimate be provided.
• You will be able to discuss the basis and timing of the loan estimate disclosures.
• You will be able to explain the key elements of the loan estimate.
• You will be able to identify and recognize the content and format of the loan estimate.