CFPB Provides Guidance on the TILA-RESPA Integrated Disclosures Rule

by Ballard Spahr LLP

On June 17, 2014, the CFPB staff and Federal Reserve co-hosted a webinar on the final TILA-RESPA Integrated Disclosures Rule that will be effective for applications received by creditors or mortgage brokers on or after August 1, 2015. The webinar is the first in a planned series intended to help creditors, mortgage brokers, settlement agents, software developers, and other stakeholders familiarize themselves with the rule’s architecture and its substantive and procedural disclosure requirements. The CFPB staff used the initial webinar to provide a basic overview of the final rule and new disclosures that we have previously covered here

According to the CFPB staff, subsequent webinars on the final TILA-RESPA Integrated Disclosures rule will function entirely as a spoken Q&A to answer questions that have been posed to the Bureau. This is in contrast to the CFPB staff’s previous approach of providing private one-on-one interpretive guidance on implementing the Title 14 mortgage rules concerning the Ability-to-Repay and Qualified Mortgage rules. Although the CFPB staff does not plan to issue written Q&A, the staff believes this approach will help facilitate clear guidance on the new rules in an accessible way. 

At the end of the hour long session, the CFPB staff addressed several questions posed by stakeholders. The CFPB staff explained that a creditor is allowed to request additional information along with the six pieces of information that constitute an application, but once the six items are received the three business day timeframe to issue the Loan Estimate is triggered whether or not other requested information is provided. The CFPB staff also noted that a creditor must follow pre-disclosure restrictions set forth in 12 C.F.R. § 1026.19(e)(2), such as the prohibitions on creditors requiring consumers to submit verifying information and imposing fees other than a bona fide and reasonable fee for obtaining a credit report before providing the Loan Estimate.

The CFPB staff added that a fee is considered “imposed by” a creditor if the creditor requires a consumer to provide a method for payment, even if the payment is not made at that time.  For example, according to the commentary, if a creditor requires a consumer to provide a $500 check to pay for a “processing fee” before the consumer receives the required disclosures and indicates an intent to proceed, the request is not in compliance with the rule even if the creditor had stated that the check will not be cashed until after the consumer has received the disclosures and indicated an intent to proceed. There are similar restrictions with respect to a creditor requesting credit card numbers in advance of providing disclosures, although there is an exception that allows a creditor to obtain a consumer’s credit card number before the consumer receives the necessary disclosures for the purpose of charging a reasonable and bona fide fee for obtaining the consumer’s credit report if the creditor abides by certain requirements. 

In addition, the CFPB staff stated that with respect to the Loan Estimate generation requirement, a creditor does not have to collect all six pieces of information that constitute a completed application at once. Accordingly, a creditor is allowed to sequence the order of the application process to control when the obligation to issue a Loan Estimate is triggered. The CFPB staff noted that they expect some creditors to hold off on collecting items like a consumer’s social security number to run a credit report until they have other information that they are interested in from the consumer. The CFPB addresses the sequencing of information in the supplementary information to the final rule. We find it odd that for purposes of what is a completed application under the integrated disclosure rule, the CFPB decided not to include the seventh element in the current rule under Regulation X (any other information required by the loan originator), and then provides guidance on how creditors can avoid triggering an application by sequencing the collection of information.

The CFPB staff also stated that the rule permits creditors to provide an early estimate to a consumer prior to receiving an application, as long as it contains a disclaimer to prevent confusion with the Loan Estimate. The small entity compliance guide to the final rule states that the disclaimer is required for advertisements.  According to the CFPB staff, that statement is a “technical glitch.” The CFPB staff noted that the regulatory text of 12 C.F.R. § 1026.19(e)(2)(ii) makes clear that the pre-disclosure estimate disclaimer requirement applies only to written information specific to a consumer. Accordingly, advertisements, which are targeted at a general audience, are not covered by the rule.

We look forward to future CFPB staff webinars on the topic of the final TILA –RESPA Integrated Disclosures Rule and applaud the efforts on the part of the CFPB to provide greater clarity as the rule is implemented.

The entire presentation can be viewed here.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Written by:

Ballard Spahr LLP

Ballard Spahr LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.