CFPB Clarifies TILA/RESPA Rule
In a letter to members of the House Financial Services Committee, the CFPB has clarified the three circumstances under which credit unions and other mortgage lenders must restart the clock to allow consumers three business days to review their mortgage package before closing. Those three circumstances are: (1) if the lender increases the APR by more than 12.5 basis points for a fixed rate mortgage or by more than 25 basis points for an ARM; (2) if the lender adds a prepayment penalty; or (3) if the lender changes the loan from a fixed rate product to an ARM. [6/5/15/]
