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CFPB Publishes Updated Versions of Small Entity Compliance Guide and Guide To Forms

October 13, 2016 / Source: Ballard Spahr, LLP

By Matthew Smith on October 13th, 2016Posted in CFPB General, Mortgages, TILA / RESPA

The CFPB has posted on its TILA-RESPA implementation webpage updated versions of itsSmall Entity Compliance Guide and Guide to Loan Estimate and Closing Disclosure Forms.  The updates focus on various guidance provided in recent TILA/RESPA Integrated Disclosure (TRID) rule webinars provided by the Bureau.  We have previously addressed the content of the March 1, 2016 and April 12, 2016 webinars.

Among the changes, the CFPB added the following language to the second Guide, apparently to address the issue in the industry regarding whether same payment range must be disclosed in multiple columns for an adjustable rate loan when a rate change can move the payment within the disclosed range, even though the payment range remains the same:

“Adjustable Rate loans – the Projected Payments table will have a new column, up to a maximum of four columns, for each scheduled rate adjustment. Because the Principal & Interest amount may change each time the rate is scheduled to adjust, a new column is required, up to a maximum of four columns. There is a new column, up to a maximum of four columns, even if the range of payments will stay the same. For example, there is a new column, up to a maximum of four columns, even when the range will stay the same because the range is the minimum and maximum interest rate caps listed in the contract. (Comment 37(c)(1)(i)(A)-1).”