CFPB Finalizes Amendments to Know Before You Owe Rules
Tue 11 Jul, 2017 / by McIntyre & Lemon / Client Alerts
07/11/17 – The CFPB finalized updates to its “Know Before You Owe” mortgage disclosure rule with amendments that are intended to formalize guidance in the rule, and provide greater clarity and certainty.
The changes will facilitate implementation of the Know Before You Owe rule by the mortgage industry. The Consumer Financial Protection Bureau (CFPB) also released a limited follow-up proposal to address an additional implementation issue.
The Know Before You Owe mortgage disclosure rule took effect Oct. 3, 2015. This rule created new, streamlined forms that consumers receive when applying for and closing on a mortgage. These new forms included clarifications and technical corrections. Additionally, the amendments that the CFPB finalized address a handful of other issues within the rule, including:
- Tolerances for the total of payments.
- Housing assistance lending.
- Privacy and sharing of information.
In addition to the final rule, the CFPB is issuing a proposal addressing when a creditor may use a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance. Comments on the proposal are due within 60 days after the proposal is published in the Federal Register.