Part 4: Loan Estimate – Timing & Consumer Receipt

The following information is intended for general information purposes with the goal of assisting Ellie Mae’s customers in complying with the new KBYO regulations. This information is provided as a courtesy to Ellie Mae’s customers and Ellie Mae makes no representation or warranty regarding the accuracy of the information set forth herein, and you may not rely on this information to ensure your company’s compliance with the KBYO regulations. This FAQ should not be construed as legal advice or opinion on any specific facts or circumstances, including the application of the KBYO regulations. You are advised to consult your own compliance staff or attorney regarding your specific residential mortgage lending questions or situation to ensure your compliance with all applicable laws and regulations.
When does the Loan Estimate have to be provided to the consumer?
The creditor shall deliver or place in the mail the Loan Estimate no later than the third [general] business day after receipt of the consumer’s application. If a mortgage br...
Is the Initial Loan Estimate at a minimum required 7 days prior to consummation?
Yes, the creditor (or mortgage broker – see above) must deliver or place in the mail the Loan Estimate no later than the seventh [specific] business day before consummation o...
What happens if the Loan Estimate doesn’t get delivered within 3 days, can you start over again?
No. There is no cure for timing of disclosure issuance, once you have the 6 items defined as an application the clock starts regarding the three (general) business days regardi...
What are the differences between a Creditor's (General) Business Day and the more specific Business Day?
General Business Day (for purposes of the question "creditor’s business day"): A day on which the creditor’s offices are open to the public for carrying on sub...
When a federal holiday is observed on a different day, which day do you count? For example, the 4th of July is on Saturday but is observed on Friday.
It depends on whether you are talking about a general or specific business day. If general, for timing of initial issuance of the Loan Estimate, it would depend on...
If my teller line is open on a Saturday, is Saturday a business day?
Saturday would be considered a general business day if your offices are open to the public for carrying on substantially all of your business functions. You should consult your...
What if the state where you are lending considers Saturday a business day but you as a creditor are closed? Would the state’s ruling take precedent?
You should refer to the specific state laws and regulations in this case, as well as your compliance expert or attorney. However, for purposes of federal compliance it would no...
If the application is taken on the same day the loan is locked, does the 3-day delivery rule apply? Or, does the Loan Estimate need to be disclosed by the end of the next business day?
Effective on October 3, 2015, no later than three business days after the date the interest rate is locked, the creditor shall provide a revised version of the Loan Estimate to...
If the transaction has a mortgage broker, who should provide the Loan Estimate?
If a mortgage broker receives a consumer’s application either the creditor or the mortgage broker may provide a consumer with the Loan Estimate. If the mortgage broker provid...
If there is a broker in a transaction, is the Loan Estimate trigger date the date the broker received the application or when the creditor receives the application?
The date the mortgage broker receives the application. There is only one application date per transaction. Citation(s): §1026.19(e)(1)(ii) and Commentary ¶19(e)(...
Does the way I provide or deliver the initial Loan Estimate affect the timing of providing the Loan Estimate?
No, not in terms of time of providing the Loan Estimate. However, see questions below regarding "receipt" of the disclosure by the consumer. In terms of providing the Loan Esti...
When is a consumer considered to have received the Loan Estimate?
If not provided in person, receipt is assumed 3 [specific] business days after providing the disclosure by: Mail delivery Overnight Mail (FedEx, UPS) ...
Can a creditor rely on evidence of receipt to shorten the 3-day mailbox rule?
Yes. Example 1: If creditor sends the Loan Estimate via overnight mail on Monday and consumer signs for receipt on Tuesday, the creditor can demonstrat...
For delivery, if we are doing eSigning in person with the borrower, can it be assumed as received as well?
Yes, see the previous question above regarding the use of electronic delivery. Citation(s): Commentary ¶19(e)(1)(iv)-2; Commentary ¶19(f)(1)(iii)-2
Does this include via email on the original Loan Estimate?
Yes, see the previous question above regarding the use of electronic delivery. Citation(s): Commentary ¶19(e)(1)(iv)-2
Can you talk about how eDisclosures may be impacted by this rule? For example, if a consumer does not consent to electronic delivery in the first 3 days are we obligated to drop the disclosures in the mail?
Yes, if a creditor delivers the Loan Estimate to a consumer via email, but the creditor did not obtain the consumer’s consent to receive disclosures via email prior to delive...
If the borrower does not have email for delivery, what will be acceptable form of delivery on the next day, FedEx or put in the mail?
Regulation Z provides that if any disclosures required are not provided to the consumer in person then the consumer is considered to have received the disclosures three specifi...
Who should receive the Loan Estimate if the transaction has multiple consumers?
If there is more than one consumer the Loan Estimate may be provided to any consumer who is primarily liable on the obligation. If one consumer is merely a surety or guarantor ...
If you are emailing and there are two consumers, is emailing to one email considered sufficient?
It depends on whether you are talking about the Loan Estimate or the Closing Disclosure. Loan Estimate: If there is more than one consumer then the Loan Estimate m...
How would you know on a joint application that both borrowers received a Loan Estimate? (We are a wholesale lender.)
As the creditor (lender) you will need to ascertain any applicable information and/or documentation, as applicable, from your business partners since you are ultimately respons...
What happens in October when your final forms are new but initials are old?
The new forms are driven via an Application date, so if a creditor provides a Good Faith Estimate (application received prior to 10/3/2015) then closing documents would be HUD-...
If you deny an application within 3 days of triggering an application, are there any disclosures that are required other than a notice of denial?
There could be. In terms of the Loan Estimate no, as long as the adverse action notice has been provided to the consumer. However, there are disclosures specific to timing rela...
Disclaimer: The above information is intended for general information purposes with the goal of assisting Ellie Mae’s customers in complying with the new KBYO regulations. This information is provided as a courtesy to Ellie Mae’s customers and Ellie Mae makes no representation or warranty regarding the accuracy of the information set forth herein, and you may not rely on this information to ensure your company’s compliance with the KBYO regulations. This FAQ should not be construed as legal advice or opinion on any specific facts or circumstances, including the application of the KBYO regulations. You are advised to consult your own compliance staff or attorney regarding your specific residential mortgage lending questions or situation to ensure your compliance with all applicable laws and regulations.

CFPB announcement regarding the delay of TRID

The Consumer Financial Protection Bureau is delaying until October 3, 2015, the effective date of the TILA-RESPA Final Rule and the related TILA-RESPA Amendments. In light of certain procedural requirements under the Congressional Review Act (CRA), the TILA- RESPA Final Rule and the TILA-RESPA Amendments cannot take effect on August 1, 2015, as originally provided by those rules. To comply with the CRA and to help ensure the smooth implementation of the TILA-RESPA Final Rule, the Bureau is extending the effective date of both the TILA-RESPA Final Rule and the TILA-RESPA Amendments beyond the additional minimum period required by the CRA to October 3, 2015, as proposed. The Bureau is also making certain technical amendments to the Official Interpretations of Regulation Z to reflect the new effective date and technical corrections to two provisions of Regulation Z adopted by the TILA-RESPA Final Rule.

The full statement from CFPB Director Richard Cordray can be viewed here

Popular KBYO questions

When do the new disclosures become effective and for which transactions? Part 1: Rule Applicability What happens in October when your final forms are new but initials are old? Part 4: Loan Estimate – Timing & Consumer Receipt For electronic delivery of disclosures, after a borrower agrees to accept electronic delivery in compliance with the ESIGN Act must all disclosures be sent through an ESIGN compliant system, or can a lender email a scanned copy of a document through normal email? Can the borrower return the document by email as an attachment? Part 3: Loan Estimate – Miscellaneous Questions If an application is received prior to October 3, 2015 and a Good Faith Estimate was provided to a consumer should a HUD-1 Settlement Statement and Final TIL Disclosure Statement or a Closing Disclosure be provided to the consumer when the consummation date is on or after October 3, 2015? Part 1: Rule Applicability Do you define “exempt” to mean we are not “allowed” to use the new forms or not “required” to use them? Can we send the new forms on a HELOC for example in lieu of the old? Can we use the new disclosures on all transactions? Part 1: Rule Applicability Can you confirm coops are excluded from the new disclosures since they are not secured by real property? Part 1: Rule Applicability Are transactions with 25 acres and more exempt? Part 1: Rule Applicability When can we start the new disclosures? Part 1: Rule Applicability What if no lender credits are decided until the loan closing, does a new Loan Estimate need to be provided to reflect this? Part 9: Revised Loan Estimate – Revisions/Re-Disclosure (including Timing & Delivery) If loan amount changes, then can the lender credits change? Part 9: Revised Loan Estimate – Revisions/Re-Disclosure (including Timing & Delivery)