[Federal Register Volume 80, Number 62 (Wednesday, April 1, 2015)]
[Notices]
[Pages 17414-17415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-06568]


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BUREAU OF CONSUMER FINANCIAL PROTECTION


Notice of Availability of Revised Consumer Information 
Publication

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice of availability.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) announces 
the availability of an updated consumer publication, the home buying 
information booklet, also known as the special information booklet or 
the settlement cost booklet (Booklet), required under the Real Estate 
Settlement Procedures Act (RESPA), Regulation X, and Regulation Z. This 
version of the Booklet incorporates statutory amendments and the Loan 
Estimate and Closing Disclosure from the Bureau's final rule, 
Integrated Mortgage Disclosures Under the Real Estate Settlement 
Procedures Act (Regulation X) and the Truth in Lending Act (Regulation 
Z) (Integrated Disclosures Final Rule). The title of this publication 
is ``Your Home Loan Toolkit: A Step-by-Step Guide.''

ADDRESSES: The updated consumer publication is available for download 
on the Bureau's Web site at www.consumerfinance.gov/learnmore and can 
also be found in the Catalog of U.S. Government Publications (http://catalog.gpo.gov), maintained by Superintendent of Documents, U.S. 
Government Publishing Office, Washington, DC 20402.

FOR FURTHER INFORMATION CONTACT: Julie Vore, Originations Analyst, 
Office of Mortgage Markets; David Friend, Counsel, Office of 
Regulations, [email protected] or (202) 435-7700.

SUPPLEMENTARY INFORMATION: The Bureau is hereby publishing this notice 
of availability to inform the public of the existence of an updated 
version of the Home Buying Information Booklet.

Background on the Booklet

    In its enactment in 1974, section 5 of RESPA required the provision 
of ``special information booklets'' to help persons borrowing money to 
finance the purchase of residential real estate to understand better 
the nature and costs of real estate settlement services. Public Law 93-
553. Since 1976, the Department of Housing and Urban Development (HUD) 
implemented the requirement through publication of the Booklet titled 
``Shopping for Your Home Loan: Settlement Cost Booklet.''
    Section 1450 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act), Public Law 111-203, amended section 5 
of RESPA by, among other things, transferring responsibility for the 
Booklet from HUD to the Bureau. 12 U.S.C. 2604, as amended by the Dodd-
Frank Act, requires the Director of the Bureau to prepare, at least 
once every five years, ``a booklet to help consumers applying for 
federally related mortgage loans to understand the nature and costs of 
real estate settlement services.'' 12 U.S.C. 2604(a). Section 1450 of 
the Dodd-Frank Act also amended 12 U.S.C. 2604 by adding new content 
requirements, including information on homeownership counseling 
services, an explanation of a consumer's responsibilities, liabilities 
and obligations in a mortgage transaction, and a list of questions a 
consumer obtaining a federally related mortgage loan should ask 
regarding the loan, including whether the consumer will have the 
ability to repay the loan, whether the consumer sufficiently shopped 
for the loan, whether the loan terms include prepayment penalties or 
balloon payments, and whether the loan will benefit the borrower. Other 
statutes, discussed below, have also amended 12 U.S.C. 2604 to include 
additional information on flood insurance.
    In November 2013, the Bureau issued a final rule that amended 
section 1024.5 to provide creditors with an exemption from certain 
RESPA requirements, including the requirements of section 1024.6, for 
loans subject to the TILA-RESPA integrated disclosure requirements. The 
rule also added section 1026.19(g), which is substantially similar to 
the requirements of 1024.6, but modified to conform to the usage 
associated with TILA.
    To reflect the transfer of the Booklet to the Bureau and ensure 
consistency with the Bureau's rulemakings regulating practices in 
mortgage origination and servicing that took effect in January 2014, 
the CFPB made technical and conforming changes to the Booklet and made 
the revised Booklet available in January 2014. 79 FR 1836 (Jan. 10, 
2014).

Contents of the Updated Version of the Booklet

    The Bureau is updating the Booklet to incorporate: (1) statutory 
amendments made to 12 U.S.C. 2604 by the Dodd-Frank Act, the Moving 
Ahead for Progress in 21st Century Act, Public Law 112-141, and the 
Homeowner Flood Insurance Affordability Act of 2014, Public Law 113-89; 
(2) the Bureau's Integrated Disclosures final rule effective on August 
1, 2015; and (3) additional Bureau contact information, online tools, 
and information on how to submit complaints. Every effort was made to 
incorporate all statutory amendments; however, a Dodd-Frank Act 
amendment to 12 U.S.C. 2604 to provide notice of a loan fraud brochure 
and the web address and telephone number for obtaining the brochure 
could not be incorporated, as the brochure is no longer supported by 
the issuing agency. Instead, the Bureau has provided a link in the 
Booklet to a HUD Web page on loan fraud.
    The Bureau views this publication as part of the Bureau's broader 
mission to educate consumers about consumer financial products. The 
Booklet has also been revised to, among other things, improve the 
readability and usability of the booklet and link to the Bureau's Web 
site, regarding tools and resources that consumers can use to make 
better-

[[Page 17415]]

informed decisions about homeownership. The Bureau is currently 
developing a Spanish-language version of the Booklet and will publish a 
Notice of availability in the Federal Register when that Booklet is 
released. Pursuant to section 1026.19(g)(2), creditors may not make 
changes to, deletions from, or additions to the Booklet other than 
certain types of changes to the cover page.

Distribution and Use of the Updated Booklet

    Under 12 U.S.C. 2604(a), lenders are required to provide the 
Booklet to each person from whom it receives an application for a 
mortgage loan and must deliver the Booklet or place it in the mail not 
later than 3 business days after the lender receives an application. As 
the Booklet has been redesigned to help consumers more effectively shop 
for a mortgage, all market participants are also encouraged to provide 
the Booklet to consumers at any other time, preferably as early in the 
home or mortgage shopping process as possible.
    Those who provide the Booklet should be aware that this update 
includes information on the new Loan Estimate and Closing Disclosure 
required to be provided to consumers for applications for federally 
related mortgage loans that are received on or after August 1, 2015. 
Because previous versions of the Booklet do not reference or explain 
the new integrated disclosures, the Bureau believes that providing 
consumers with the updated Booklet in conjunction with the integrated 
disclosures is important to facilitating consumers' understanding of 
the transaction.

    Dated: March 12, 2015.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2015-06568 Filed 3-31-15; 8:45 am]
 BILLING CODE 4810-AM-P