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Welcome back! We hope everyone had a wonderful, safe and patriotic Independence Day. With that long weekend behind us, let’s recap last week. We delved further into aspects of the Loan Estimate form, including changes during the Loan Estimate window, a “Business Day” and designating estimated values on the disclosure form when you don’t have all the information but still deliver it during the 3-day window.

Business Day:

TILA-RESPA has a specific definition for what constitutes being open for business, and therefore what counts as a day against the 3 day rule. It is important for Lenders to understand what does or does not qualify as being open for business so that they do not get penalized for missing disclosure deadlines.

Loan Estimate:

  • Changes during the Loan Estimate window: changes happen during the 3 days from the request for an estimate and the delivery of the Loan Estimate. We discussed what the rules are in regards to when the Loan Estimate does not need to be delivered due to changes, and when the Estimate must still be delivered regardless of the new information.
  • Good faith effort: there will be times when the required information for completing a Loan Estimate are not immediately available. The blog discussed what actions the Lender should take to make a good faith effort to reasonably estimate the costs.

This week we will discuss an alternative to providing estimates on the Loan Estimate form when you don’t have all the consumer’s information, potential risks of mortgage brokers providing loan estimates on behalf of creditors, and more.

Be sure to check back each day this week for these posts, and visit the TilaRespa Knowledge Center for more information on technology solutions that can help your business be compliant on August 1, 2015.

All information and views expressed or implied are provided without warranty and are only the opinion of Pavaso, Inc. Each participant should seek legal representation for legal interpretation of the ruling and the CFPB directly for final instruction and interpretation. The final rule can be found here.