REVISED COMPLIANCE BROCHURE AND BOOKLETS

On January 6, 2014 the Consumer Financial Protection Bureau (CFPB) published three revised consumer publications, including a consumer information brochure and two booklets required under the Real Estate Settlement Procedures Act (RESPA), Regulation X, the Truth in Lending Act (TILA), and Regulation Z. These publications are titled:

(1)  What You Should Know About Home Equity Lines of Credit (HELOC Brochure);

(2)  Consumer Handbook on Adjustable-Rate Mortgages (CHARM Booklet); and

(3)  Shopping for Your Home Loan, Settlement Cost Booklet (Settlement Cost Booklet).

The CFPB is making technical and conforming changes to each of the three publications in conjunction with the January 2014 effective dates for many provisions of the CFPB’s rulemakings regulating practices in mortgage origination and servicing. The CFPB therefore expects to consider further revisions to these publications in the future, in particular to reflect changes to disclosure requirements for mortgage credit transactions under TILA and for real estate settlements under RESPA, pursuant to the CFPB’s Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z) final rule issued on November 20, 2013.

Mandatory Use – Creditors may, at their option, immediately begin using the revised HELOC Brochure, CHARM Booklet, or Settlement Cost Booklet, or suitable substitutes to comply with the requirements in Regulations X and Z. The CFPB understands, however, that some may wish to use their existing stock of publications. Therefore, creditors may use earlier versions of these publications until existing supplies are exhausted. When reprinting these publications, the most recent version should be used.

The revised Settlement Cost Booklet is available here.

The revised Consumer Handbook on Adjustable-Rate Mortgages is available here.

The revised booklet entitles, What You Should Know About Home Equity Lines of Credit, is available here.

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