CFPB Updates Mortgage Booklet Lenders Must Provide To Homebuyers
By CU Today Staff —
WASHINGTON—The Consumer Financial Protection Bureau has updated its “Your Home Loan Toolkit,” the consumer booklet lenders—including credit unions—generally must provide to applicants for covered home-purchase mortgages.
The CFPB’s compliance page, last updated in August, says financial institutions may begin using the revised toolkit immediately, continue using an earlier version until existing supplies are exhausted, or use a suitable substitute that complies with the requirements. The Bureau said institutions reprinting the booklet should use the most recent version.
The requirement stems from the Real Estate Settlement Procedures Act and Regulation X. Under Section 1024.6, a lender generally must deliver or mail the special information booklet within three business days after receiving or preparing a written application for a federally related mortgage loan. If a mortgage broker is involved, the broker is responsible for providing it. Among the exceptions are refinancing transactions, closed-end subordinate-lien loans, reverse mortgages and other federally related mortgages that are not for the purchase of a one- to four-family residential property.
The toolkit is intended to help borrowers understand the homebuying process and the nature and costs of real estate settlement services. The CFPB encourages lenders and other market participants to make it available even earlier in the home- or mortgage-shopping process. The Bureau provides the revised toolkit in English and Spanish in both electronic and print-ready formats, along with instructions for institutions that want to add their own logos.
Originally reported by CU Today.