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Highlights:
The revisions to the Truth in Lending Act (TILA) early disclosure
requirements, incorporating the MDIA amendments:
- expand the requirements to mortgage loans secured by any dwelling of a consumer. The
requirements no longer are limited to a consumer's "principal" dwelling. The early disclosure
requirements also now cover refinancings and home equity loans.
- require delivery or mailing of the early disclosures within three business days of receiving a
consumer's mortgage loan application. A lender also must wait until at least seven business days
after delivery of the disclosures before consummating the mortgage loan.
- require corrected disclosures to be delivered at least three business days before consummation
if the annual percentage rate provided in the early disclosures changes beyond the tolerances
provided in Section 226.22.
- prohibit a lender from charging a consumer any fee, except to obtain a credit report, until
after the early disclosures have been provided.
- permit a consumer to expedite the closing of a mortgage loan subject to the early disclosure
provisions to address a personal financial emergency, such as foreclosure.
- inform a consumer that he or she is not required to complete the transaction because the
consumer has received the early disclosures or applied for a loan.
(See the attached supplement for a comparison of the 2008 and 2009
revisions and FIL-134-2008 for an overview of the
2008 revisions.)
Distribution:
FDIC-supervised Banks (Commercial and
Savings)
Suggested Routing:
Chief Executive Officer
Chief Loan Officer
Chief Compliance Officer
General Counsel
Attachment:
Supplement to FIL-26-2009: Regulation Z (Truth
in Lending) Early Disclosures Requirements
Supplement to FIL-26-2009: Regulation Z (Truth
in Lending) Early Disclosures Requirements - PDF (PDF Help)
Related Topics:
Truth in Lending Act
Mortgage Disclosure Improvement Act of 2008
FIL-134-2008:
http://www.fdic.gov/news/news/financial/2008/fil08134.html
12 CFR Part 226, final rule:
http://edocket.access.gpo.gov/2009/pdf/E9-11567.pdf
(PDF Help)
Contact:
Senior Policy Analyst Glenn S. Gimble at
GGimble@FDIC.gov or (202) 898-6865
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2009/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters
may be obtained through the FDIC's Public
Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342 or 703-
562-2200).
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