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New Truth In Lending Act Disclosure Requirements Home Buyers Should Know About
Revisions to the Truth In Lending Acts disclosure requirements took place July 30, 2009. Many believethe new requirements will be a challenge for lenders to comply and also may cause delays for closings. Only time will tell, but once again the process has become more complicated. The new revisions are as follows.
• The new requirements apply to all mortgages secured by a borrower's home, including
primary and second homes and refinancings. Investor loans continue to be exempt.
• Lenders must give good faith estimates of mortgage loan costs within 3 business days
after the consumer applies for a loan (early disclosure). The lender may not collect any
fees before the disclosure is provided, except for a reasonable fee for obtaining a credit
• The closing may not take place until expiration of a 7 day waiting period after the
consumer receives the early disclosure.
• Consumers may shorten or waive the 3‐day and/or 7‐day waiting periods for a "bona
personal financial emergency," but only after receiving an accurate TILA disclosure.
In the final rule's preamble, the Fed stated that it "believes waivers should not be used
routinely to expedite consummation for reasons of convenience." The Fed ... more
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