[Federal Register Volume 91, Number 130 (Thursday, July 9, 2026)]
[Proposed Rules]
[Pages 42382-42386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-13834]
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CONSUMER FINANCIAL PROTECTION BUREAU
12 CFR Parts 1024 and 1026
[Docket No. CFPB-2026-0018]
Request for Information Regarding Promoting Access to Mortgage
Credit
AGENCY: Consumer Financial Protection Bureau.
ACTION: Notice; request for information.
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SUMMARY: This notice requests information from the public about
potential regulatory changes that may reduce regulatory burdens and
promote access to mortgage credit, as appropriate and consistent with
applicable law. The Consumer Financial Protection Bureau (Bureau or
CFPB) seeks to reduce unwarranted regulatory burdens to ensure that
creditworthy borrowers can access mortgage credit. Specifically, the
CFPB is requesting information on industry and consumer burdens related
to the integrated mortgage disclosures under the Truth in Lending Act
(TILA) and Real Estate Settlement Procedures Act (RESPA) (TILA-RESPA
integrated disclosures or TRID), the right of rescission, and reverse
mortgage disclosures.
DATES: Comments must be received on or before August 10, 2026.
ADDRESSES: You may submit comments, identified by Docket No. CFPB-2026-
0018, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include Docket No. CFPB-2026-0018 in the subject
line of the message.
Mail/Hand Delivery/Courier: Comment Intake--Mortgage
Disclosures and Rescission RFI, c/o Legal Division Docket Manager,
Consumer Financial Protection Bureau, 445 12th St. SW, Washington, DC
20024-2101.
Instructions: The Bureau encourages the early submission of
comments. All submissions must include the document title and docket
number. Please note the number of the topic on which you are commenting
at the top of each response (you do not need to address all topics).
Because paper mail in the Washington, DC area and at the CFPB is
subject to delay, commenters are encouraged to submit comments
electronically. In general, all comments received will be posted
without change to www.regulations.gov.
All submissions in response to this request for information,
including attachments and other supporting materials, will become part
of the public record and subject to public disclosure. Proprietary
information or sensitive personal information, such as account numbers
or Social Security numbers, or names of other individuals, should not
be included. Submissions will not be edited to remove any identifying
or contact information.
FOR FURTHER INFORMATION CONTACT: Dave Gettler, Paralegal Specialist,
Office of Regulations, at 202-435-7700. If you require this document in
an alternative electronic format, please contact
[email protected].
SUPPLEMENTARY INFORMATION:
I. Summary of the Notice and Request for Information
A. Executive Order 14393--Promoting Access to Mortgage Credit
On March 13, 2026, the President issued Executive Order (E.O.)
14393, entitled ``Promoting Access to Mortgage Credit.'' \1\ E.O. 14393
provides, in part, that statutory and regulatory changes ``have
increased the compliance costs of mortgage origination'' and
``contributed to a significant decline in [community] bank
participation in mortgage lending.'' \2\ E.O. 14393 states that the
regulatory and rule changes have ``resulted in reduced access to credit
for some creditworthy borrowers.'' \3\ E.O. 14393 provides that it is
the policy of the United States to, among other things, ``improve the
availability and affordability of mortgage credit,'' ``facilitate
community bank engagement in mortgage activity,'' and ``modernize
origination and closing standards to reduce lending costs.'' \4\
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\1\ 91 FR 13203 (Mar. 18, 2026).
\2\ Id.
\3\ Id.
\4\ Id.
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Section 2 of E.O. 14393 states, in part, that the CFPB ``shall
consider, as appropriate and consistent with applicable law:
(i) proposing amendments to Regulation Z that tailor the
following requirements for smaller banks: ATR and QM requirements
(including potentially a broader QM safe harbor for portfolio loans)
and the requirements of the Truth in Lending Act, Public Law 90-321
(TILA), Real Estate Settlement Procedure[s] Act, Public Law 93-533
(RESPA), and TILA-RESPA Integrated Disclosure (TRID) rules;
(ii) replacing TRID timing rules with a materiality-based
standard that preserves consumer clarity and reduces closing delays;
[and]
. . . .
(vii) exempting rate-and-term refinancing (including cash-out
refinancing) from rescission rights.'' \5\
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\5\ Id. at 13203-04.
The CFPB recognizes certain regulations may contribute to higher
costs for borrowers needing access to mortgage credit. Consistent with
E.O. 14393 and the CFPB's express objective to ensure ``outdated,
unnecessary, or unduly burdensome regulations are regularly identified
and addressed in order to reduce unwarranted regulatory burdens,'' \6\
the CFPB is issuing this notice.
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\6\ 12 U.S.C. 5511(b)(3).
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[[Page 42383]]
B. TILA-RESPA Integrated Disclosures
Background
In 2013, as required by sections 1098 and 1100A of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (Dodd-Frank Act),\7\ the
CFPB issued the Integrated Mortgage Disclosures under the Real Estate
Settlement Procedures Act (Regulation X) and the Truth in Lending Act
(Regulation Z) final rule (2013 final rule).\8\ The CFPB has since
finalized amendments to the 2013 final rule, including in 2015 (twice),
2017, and 2018.\9\ The 2013 final rule and subsequent amendments to
that rule are referred to collectively herein as the TRID Rule.
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\7\ Public Law 111-203, 124 Stat. 1376, 2103-04, 2107-09 (2010)
(codified at 12 U.S.C. 2603(a) and 15 U.S.C. 1604(b)).
\8\ 78 FR 79730 (Dec. 31, 2013).
\9\ See 80 FR 8767 (Feb. 19, 2015); 80 FR 43911 (July 24, 2015);
82 FR 37656 (Aug. 11, 2017); 83 FR 19159 (May 2, 2018).
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On November 22, 2019, the CFPB published a request for information
(RFI) in the Federal Register as part of its assessment of the TRID
Rule's effectiveness and invited the public to submit comments and
information on a variety of topics.\10\ On October 1, 2020, the CFPB
issued its TRID Rule Assessment Report,\11\ which describes the
comments and summarizes the information received. The full comments are
available at https://www.regulations.gov/document/CFPB-2019-0055-0001/comment.
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\10\ 84 FR 64436 (Nov. 22, 2019).
\11\ Consumer Fin. Prot. Bureau, Integrated Mortgage Disclosures
Under the Real Estate Settlement Procedures Act (Regulation X) and
the Truth in Lending Act (Regulation Z) Rule Assessment Report (Oct.
2020) (Assessment Report), https://files.consumerfinance.gov/f/documents/cfpb_trid-rule-assessment_report.pdf.
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Scope of the TRID Rule
The TRID Rule generally requires creditors to provide the Loan
Estimate and Closing Disclosure forms for closed-end consumer credit
transactions secured by real property or a cooperative unit, other than
reverse mortgages.\12\ Rather than adopting a small creditor exemption,
such as one based on asset size, the TRID Rule retained the existing
volume-based exemptions in Regulation Z.\13\ In particular, Regulation
Z defines ``creditor,'' in pertinent part, as a person who regularly
extends consumer credit.\14\ Regulation Z further provides that a
person regularly extends consumer credit only if it extended credit
(other than high-cost mortgages) more than 25 times (or more than five
times for transactions secured by a dwelling) in the preceding calendar
year.\15\
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\12\ 12 CFR 1026.19(e)(1)(i) and (f)(1)(i).
\13\ 78 FR 79730, 79771 (Dec. 31, 2013).
\14\ Id. at 79789 (citing 12 CFR 1026.2(a)(17)(i)).
\15\ 12 CFR 1026.2(a)(17)(v). Regulation Z provides that if a
person did not meet these numerical standards in the preceding
calendar year, the numerical standards shall be applied to the
current calendar year. Id. Regulation Z also provides that a person
regularly extends consumer credit if, in any 12-month period, the
person originates more than one high-cost mortgage or one or more
such credit extensions through a mortgage broker. Id.
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The following is an overview of the Loan Estimate and Closing
Disclosure forms and accuracy and timing standards applicable to each.
Loan Estimate
The Loan Estimate form integrates disclosures under the TILA and
RESPA statutes, as required by the Dodd-Frank Act.\16\ For example, the
Loan Estimate integrates the early TILA disclosures provided near the
time of application and the RESPA Good Faith Estimate (GFE).\17\
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\16\ 12 U.S.C. 2603(a); 15 U.S.C. 1604(b).
\17\ 78 FR 79730, 79907-08 (Dec. 31, 2013).
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The Loan Estimate may be provided to the consumer in electronic
form,\18\ subject to compliance with the statutory provisions of the
Electronic Signatures in Global and National Commerce Act (E-Sign
Act).\19\ The E-Sign Act provides that electronic documents and
electronic signatures have the same validity as paper documents and
handwritten signatures--and that disclosures may be provided in
electronic form if the consumer affirmatively consents after receiving
a notice and if certain other conditions are met. The TRID Rule does
not require consumers to sign Loan Estimates, but it provides creditors
the option to include a line for consumer signatures to acknowledge
receipt.\20\
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\18\ 12 CFR 1026.37(o)(3)(iii).
\19\ 15 U.S.C. 7001 et seq.
\20\ 12 CFR 1026.37(n).
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In accordance with TILA,\21\ mailed disclosures are presumed to be
received by the consumer three business days after mailing.\22\ If the
creditor has evidence that the consumer received the disclosures
earlier, the creditor may rely on that evidence and consider it to be
received on that earlier date.\23\
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\21\ 15 U.S.C. 1638(b)(2)(E).
\22\ 12 CFR 1026.19(e)(1)(iv).
\23\ Regulation Z comment 19(e)(1)(iv)-2.
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Good Faith
TILA requires that ``good faith'' estimates of disclosures on the
Loan Estimate must be delivered or placed in the mail within three
business days of application.\24\ RESPA similarly requires that ``good
faith'' estimates of settlement costs must be provided within three
business days of application.\25\ The TRID Rule provides bright-line
tolerance standards for the objective determination of whether the
estimates were made in ``good faith.'' \26\ If the consumer is
ultimately charged more than the applicable tolerances because of
changed circumstances, the TRID Rule also permits creditors to reset
the tolerances with revised estimates as discussed below.\27\ As
discussed in the TRID Rule preamble, these tolerance standards are
similar to preexisting Regulation X disclosure standards that implement
RESPA.\28\ Moreover, TILA generally authorizes the CFPB to adopt
tolerances necessary to facilitate compliance with the statute,
provided such tolerances are narrow enough to prevent misleading
disclosures or disclosures that circumvent the purposes of the
statute.\29\ The TRID Rule preamble states that the rule's tolerances
``are appropriate, will facilitate compliance with the statute by
providing bright-line rules for the determination of `good faith' based
on the knowledge of costs that creditors have, or reasonably should
have, and prevent misleading disclosures.'' \30\ The TRID Rule preamble
further states that the rule's tolerances ``will effectuate the
statute's goals by ensuring more reliable estimates, which will
increase the level of shopping for mortgage loans and foster honest
competition for prospective consumers among financial institutions.''
\31\
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\24\ 15 U.S.C. 1638(b)(2)(A); see also 12 CFR
1026.19(e)(1)(iii)(A).
\25\ 12 U.S.C. 2604.
\26\ 12 CFR 1026.19(e)(3).
\27\ Id.
\28\ 78 FR 79730, 79818 (Dec. 31, 2013).
\29\ 15 U.S.C. 1631(d).
\30\ 78 FR 79730, 79822 (Dec. 31, 2013).
\31\ Id.
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Zero Tolerance
Estimates of charges paid to creditors or mortgage brokers (or
their affiliates) and transfer taxes are in good faith if the consumer
is not charged more than the estimates. Estimates of third-party
charges are also subject to zero tolerance if the creditor requires the
consumer to use creditor-selected service providers (rather than
permitting the consumer to shop for third-party service providers).\32\
In response to the November 2019 RFI, several commenters stated that
transfer taxes and third-party appraisal fees are particularly
difficult for creditors to estimate within three business days of
application and that the CFPB should
[[Page 42384]]
not include these fees in the zero tolerance category.\33\
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\32\ 12 CFR 1026.19(e)(3)(i).
\33\ Assessment Report at 192.
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10 Percent Tolerance
Estimates of recording fees and certain third-party charges are
deemed to have been made in good faith when the creditor permits the
consumer to shop for third-party service providers if, in the
aggregate, the consumer is charged no more than 10 percent in excess of
the estimates.\34\ Specifically, estimates of unaffiliated third-party
charges are subject to the 10 percent tolerance if the creditor permits
the consumer to shop for that service, but nonetheless the consumer
either does not choose a provider, or chooses a provider identified by
the creditor.
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\34\ 12 CFR 1026.19(e)(3)(ii).
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Unlimited Tolerance
Estimates of other third-party charges are in good faith--
regardless of how much the consumer is charged--if the consumer chooses
a third-party service provider that is not on the creditor's list of
providers (so long as the estimate was based on the best information
reasonably available). Estimates of prepaid interest, property
insurance premiums, escrowed amounts, property taxes, and charges for
non-required services similarly have no tolerance limit.\35\
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\35\ 12 CFR 1026.19(e)(3)(iii).
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Seven-Business-Day Waiting Period
As required by TILA,\36\ the Loan Estimate must be delivered or
placed in the mail not later than seven business days prior to
consummation.\37\ After receiving the Loan Estimate, in accordance with
TILA,\38\ the consumer may waive the seven-business-day waiting period
for a bona fide personal financial emergency.\39\
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\36\ 15 U.S.C. 1638(b)(2)(A).
\37\ 12 CFR 1026.19(e)(1)(iii)(B).
\38\ 15 U.S.C. 1638(b)(2)(F).
\39\ 12 CFR 1026.19(e)(1)(v).
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Revised Estimates
As noted above, TILA requires initial ``good faith'' estimates
within three business days of application--and the TRID Rule provides
bright-line tolerance standards for the determination of ``good
faith.'' If the consumer is charged more than the tolerances (e.g.,
zero or 10 percent tolerances), the TRID Rule also permits creditors to
reset the tolerances with revised estimates if they are provided within
three business days of receipt of information necessitating the
revision (i.e., changed circumstance).\40\ In response to the November
2019 RFI, several commenters stated that tracking such changes and
issuing revised estimates to the consumer within three business days is
unduly burdensome.\41\
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\40\ 12 CFR 1026.19(e)(3) and (4).
\41\ Assessment Report at 193.
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The TRID Rule prohibits providing revised Loan Estimates on or
after the date on which the creditor provides the Closing Disclosure
form.\42\ Accordingly, the TRID Rule also permits creditors to reset
tolerances (e.g., zero or 10 percent tolerances) with a Closing
Disclosure if it is provided within three business days of receipt of
information necessitating the revision (i.e., changed
circumstance).\43\
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\42\ 12 CFR 1026.19(e)(4)(ii).
\43\ 12 CFR 1026.19(e)(3) and (4).
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Closing Disclosure
The Closing Disclosure form integrates the final TILA disclosures
and the RESPA Settlement Statement (HUD-1), as required by the Dodd-
Frank Act.\44\ The Closing Disclosure may be provided to the consumer
in electronic form,\45\ subject to compliance with the statutory
provisions of the E-Sign Act as noted above.\46\ The TRID Rule does not
require consumers to sign the Closing Disclosure, but it provides
creditors the option to include a line for consumer signatures to
acknowledge receipt.\47\
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\44\ 12 U.S.C. 2603(a); 15 U.S.C. 1604(b).
\45\ 12 CFR 1026.38(t)(3)(iii).
\46\ 15 U.S.C. 7001 et seq.
\47\ 12 CFR 1026.38(s).
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Three-Business-Day Waiting Period
The consumer must receive the Closing Disclosure no later than
three business days before consummation.\48\ TILA generally requires
that, if the annual percentage rate (APR) disclosed in the early TILA
disclosures becomes inaccurate (subject to an APR tolerance of 0.125
percent for most loans), the creditor must provide corrected
disclosures to the consumer no later than three business days before
consummation.\49\ After receiving the Closing Disclosure, in accordance
with TILA,\50\ the consumer may waive the three-business-day waiting
period for a bona fide personal financial emergency.\51\
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\48\ 12 CFR 1026.19(f)(1)(ii).
\49\ 15 U.S.C. 1638(b)(2)(D); 15 U.S.C. 1606(c).
\50\ 15 U.S.C. 1638(b)(2)(F).
\51\ 12 CFR 1026.19(f)(1)(iv).
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A new three-business-day waiting period is required if one of the
following events occurs: (1) the APR becomes inaccurate,\52\ subject to
APR tolerances discussed above and in accordance with TILA; \53\ (2)
the loan product changes; \54\ or (3) a prepayment penalty is
added.\55\ In accordance with TILA,\56\ the consumer may similarly
waive the new three-business-day waiting period for a bona fide
personal financial emergency.\57\ For other changes besides the three
types of changes listed above, a new three-business-day waiting period
is not required (but the consumer must receive a corrected Closing
Disclosure at or before consummation).\58\
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\52\ 12 CFR 1026.19(f)(2)(ii)(A).
\53\ 15 U.S.C. 1638(b)(2)(D); 15 U.S.C. 1606(c).
\54\ 12 CFR 1026.19(f)(2)(ii)(B).
\55\ 12 CFR 1026.19(f)(2)(ii)(C).
\56\ 15 U.S.C. 1638(b)(2)(F).
\57\ 12 CFR 1026.19(f)(1)(iv).
\58\ 12 CFR 1026.19(f)(2)(i).
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In response to the November 2019 RFI, several commenters stated
that the CFPB should provide additional guidance or otherwise
streamline consumers' ability to waive the Closing Disclosure three-
business-day waiting period.\59\ For refinancing transactions for which
there is a three-business-day rescission period after consummation
under TILA, several commenters stated that requiring a three-business-
day waiting period before consummation is redundant and an undue
burden.\60\
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\59\ Assessment Report at 187.
\60\ Id.
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C. Right of Rescission
TILA established a consumer's statutory right to rescind most
transactions for which the home is taken as collateral, other than
transactions for the purchase of the home.\61\ TILA and Regulation Z
provide consumers with a three-day period to rescind a consummated
agreement for any reason.\62\ The rescission period begins after the
last of three events: consummation of the transaction; delivery of all
material disclosures; and delivery to the consumer of the required
rescission notice. No money may be disbursed other than in escrow, no
services may be performed, and no materials may be delivered until the
rescission period has expired and the creditor is reasonably satisfied
that the consumer has not rescinded.\63\
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\61\ Public Law 90-321, tit. I, section 125, 82 Stat. 153
(1968).
\62\ 15 U.S.C. 1635(a); 12 CFR 1026.23(a). The rescission period
may be extended up to three years if the creditor fails to disclose,
or improperly discloses, certain TILA requirements. See 15 U.S.C.
1635(f) and 12 CFR 1026.23(a).
\63\ 12 CFR 1026.23(c).
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Provided a consumer has not waived the right of rescission to meet
a bona fide personal financial emergency,\64\ the three-day post-
consummation rescission waiting period, coupled with the three-day pre-
consummation TRID waiting period, means that a consumer whose loan is
subject to rescission has approximately one week to review the
[[Page 42385]]
loan's final terms before they become binding.
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\64\ 12 CFR 1026.23(e).
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In 2018 the CFPB issued an RFI (2018 Inherited Rules RFI) seeking
public input regarding the substance of the regulations the CFPB
inherited from other Federal agencies, including whether the CFPB
should issue additional rules.\65\ A few industry commenters requested
that the CFPB eliminate the right of rescission because the TRID Rule's
three-day pre-consummation review period gives consumers sufficient
time to review the material disclosures, and the post-consummation
waiting period harms consumers refinancing into a lower interest rate
loan.
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\65\ 83 FR 12881 (Mar. 26, 2018).
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D. Reverse Mortgages
Under Regulations X and Z, a reverse mortgage transaction is a
nonrecourse consumer credit obligation in which a security interest is
created against the consumer's principal dwelling securing one or more
advances, and which is generally due and payable when the consumer
dies, the dwelling is transferred, or the consumer ceases to occupy the
dwelling as the principal dwelling.\66\ Reverse mortgages are excluded
from coverage of the TRID Rule.\67\ Regulations X and Z, implementing
RESPA and TILA, require creditors and settlement agents to give
consumers who apply for and obtain a reverse mortgage loan different
but overlapping disclosure forms regarding the loan's terms and costs.
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\66\ 12 CFR 1026.33(a).
\67\ 78 FR 79730 (Dec. 31, 2013).
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Overlapping Disclosure Requirements--Regulations X and Z
For closed-end reverse mortgages, TILA and Regulation Z require
creditors to provide an early Truth-in-Lending (TIL) disclosure within
three business days after application and at least seven business days
before consummation, and before the consumer has paid a fee other than
a fee for obtaining a credit report. If subsequent events make the TIL
disclosure inaccurate, the creditor must provide corrected disclosures
before consummation. However, if subsequent events cause the APR to
exceed certain tolerances, the creditor must provide a corrected
disclosure that the consumer must receive at least three business days
before consummation. For open-end reverse mortgages, creditors must
provide disclosures on or with an application that contains information
about the creditor's open-end reverse mortgage plans. These disclosures
do not include information dependent on a specific borrower's
creditworthiness or value of the dwelling because these application
disclosures are provided before underwriting takes place. Creditors are
required to provide transaction-specific costs and terms at the time
that an open-end reverse mortgage plan is opened.
RESPA and Regulation X also contain disclosure requirements for
reverse mortgage transactions. For closed-end reverse mortgages, a
lender must provide a GFE within three business days of receiving an
application for a reverse mortgage.\68\ For open-end reverse mortgages,
if the TILA open-end disclosures required under 12 CFR 1026.40 are
provided at the time of application, the GFE requirements are deemed to
be satisfied. Lenders may not charge a fee, other than a credit report
fee, prior to providing a GFE and obtaining a consumer's intent to
proceed with the reverse mortgage loan. For closed-end and open-end
reverse mortgage transactions, the settlement agent must permit the
borrower to inspect the HUD-1 settlement statement at least one
business day before closing. The GFE and HUD-1 disclosures are not
tailored for reverse mortgages.
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\68\ 12 CFR 1024.7.
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In response to the 2018 Inherited Rules RFI, an industry commenter
requested that the CFPB adopt a reverse-mortgage specific disclosure
regime similar to the TILA-RESPA integrated disclosures created for
forward mortgages.
Total Annual Loan Cost (TALC)
Pursuant to TILA and Regulation Z, all reverse mortgage creditors
must provide the TALC rate disclosure in accordance with appendix K of
Regulation Z at least three business days before account opening for an
open-end reverse mortgage, or consummation for a closed-end reverse
mortgage. The table of TALC rates shows the estimated cost of the
reverse mortgage loan, expressed as an annual rate, in nine scenarios.
In order to show the effect of time and home-value appreciation on the
cost of the reverse mortgage, TALC rates are based on at least three
credit transaction periods (two years, a period equal to the youngest
consumer's life expectancy, and a period equal to 1.4 times the
youngest consumer's life expectancy); and on assumed annual house
appreciation rates of 0 percent, 4 percent, and 8 percent. Generally,
the longer the consumer keeps a reverse mortgage, the lower the
relative cost will be because the upfront costs of the reverse mortgage
will be amortized over a longer period of time. Thus, the TALC rates
usually will decline over time even though the total dollar cost of the
reverse mortgage is rising.
Generic Brochures and Booklets
In addition, TILA and Regulation Z require creditors to provide
mortgage applicants, including reverse mortgage applicants, with
certain generic brochures or booklets. For example, in open-end
transactions, creditors must provide the home equity brochure entitled
``What You Should Know About Home Equity Lines of Credit'' or a
suitable substitute when an application for a home equity line of
credit is provided to the consumer. While most closed-end reverse
mortgages are fixed-rate transactions, in the rare circumstance of a
closed-end adjustable rate reverse mortgage, lenders would be required
to provide a booklet titled ``Consumer Handbook on Adjustable Rate
Mortgages'' or a suitable substitute.
II. Request for Comment
Consistent with E.O. 14393, the CFPB is considering potential
regulatory changes, as appropriate and consistent with applicable law.
This RFI is seeking comment from the public about some of those
potential regulatory changes pertaining to (1) TILA-RESPA integrated
disclosure requirements; (2) TILA rescission rights; and (3) reverse
mortgages. The CFPB requests that, where possible, comments include
supporting data or other information on the advantages and
disadvantages of suggested regulatory changes.
A. Timing Requirements--TRID Rule and Right of Rescission
Question 1. Do the timing requirements materially affect consumers'
ability to obtain mortgage credit? If so, in what ways and to what
extent is credit availability affected?
Question 2. Do the timing requirements increase costs for mortgage
brokers, creditors, or consumers? If so, do these costs outweigh any
benefits to consumers provided by such timing requirements? If so, how
do these costs compare to the costs of implementing changes to the
timing requirements?
Question 3. Are there certain transaction types or specific
scenarios that are inhibited or complicated by the timing requirements?
Question 4. Are there opportunities to provide initial Loan
Estimates earlier in the mortgage origination process to meet the
statutorily required waiting periods while allowing consumers time to
shop and reducing closing delays?
[[Page 42386]]
Question 5. Are there ways to reduce the incidence of revised
disclosures being issued while providing consumers with timely updates
to settlement costs and avoiding closing delays?
Question 6. Are there opportunities to provide Closing Disclosures
earlier in the mortgage origination process to meet the statutorily
required waiting periods while allowing consumers time to understand
loan costs, prepare for loan consummation, and avoid closing delays?
Question 7. What additional guidance or model forms could the CFPB
issue to better facilitate consumers' decision to waive the statutorily
required waiting periods for a bona fide personal financial emergency?
Question 8. Are there any materiality-based standards that could
replace or supplement timing rules, recognizing TILA's timing
requirements for delivery of disclosures after application and before
consummation--including issuance of a revised disclosure upon a change
in APR above the prescribed tolerance? If so, how should CFPB consider
defining and structuring these standards (e.g., as an optional
supplement to TILA's timing requirements or a complete substitution for
them)? Would these materiality-based standards result in improved
administrative efficiencies while preserving or improving consumer
clarity and reducing closing delays?
Question 9. Does the three-business-day post-consummation
rescission waiting period, coupled with the three-business-day pre-
consummation TRID waiting period, unduly delay loan funding for
refinance transactions? If so, how could the CFPB adjust the right of
rescission or TRID waiting periods?
B. Other TRID Requirements
Question 10. Are there adjustments to the tolerance thresholds that
could improve loan execution and result in improved credit access and
lower consumer costs? For example, are there instances where the CFPB
should consider adjusting tolerances for transfer taxes because
transfer taxes cannot be determined within three business days of
application?
Question 11. Is there additional guidance that CFPB should provide
around changed circumstances, which result in the issuance of revised
estimates? For example, should the CFPB consider providing additional
guidance around changed circumstances in cases where a purchaser
continues to negotiate with the seller for payment of charges
customarily paid by the borrower?
Question 12. Should the TRID disclosure forms be modified in a way
that would improve clarity for consumers and loan execution for
mortgage brokers or creditors?
Question 13. Is there additional guidance that CFPB should provide
regarding the acceptability of electronic or digital forms and
signatures that would promote their use and lower costs for consumers?
Question 14. Are there changes or clarifications to requirements
specific to construction loans that would provide consumer clarity,
reduce costs, or otherwise promote access to credit for the
construction of residential housing? For example, should the CFPB waive
certain requirements as the CFPB did when it issued a ``Trial
Disclosure Program Waiver Template'' to the Independent Community
Bankers of America (ICBA) covering the ICBA's alterative versions of
the Loan Estimate and Closing Disclosure tailored to construction
loans? \69\
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\69\ Consumer Fin. Prot. Bureau, Trial Disclosure Program Waiver
Template (Nov. 21, 2023), https://files.consumerfinance.gov/f/documents/cfpb_icba-trial-disclosure-waiver_2023-11.pdf.
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Question 15. Are there other changes to the TRID Rule that CFPB
should consider to facilitate compliance with the disclosure
requirements of TILA and RESPA and to aid the consumer in understanding
the transaction?
Question 16. For any potential changes recommended regarding TRID
requirements, are there any considerations for pricing or secondary
market participants that CFPB should consider, such as concerns around
acceptance of materiality-based standards in lieu of timing standards?
For example, how would potential changes impact the pricing, liquidity,
or demand for mortgages, mortgage backed securities, mortgage servicing
rights, or other mortgage backed capital markets instruments?
C. Tailored Requirements for Small Banks and Credit Unions
Question 17. Are there unique aspects of the loan origination
process performed by small banks and credit unions for which the CFPB
should consider changes to the TRID Rule specifically tailored for
small banks and credit unions? If so, how should CFPB consider
structuring these tailored changes (e.g., exemptions or alternative
requirements)?
Question 18. Would changes exclusive to small banks and credit
unions lower costs for originators, creditors, or consumers?
D. Reverse Mortgages
Question 19. The CFPB is aware that the reverse mortgage industry
faces significant difficulties applying the disclosure requirements of
TILA and RESPA to reverse mortgages, in light of those transactions'
unusual terms and features. Would integrated and tailored reverse
mortgage disclosures enable consumers to make more informed decisions?
Question 20. Would a different set of scenario assumptions in the
calculation of total annual loan cost rates in the TALC table give
consumers more reasonable and accurate likely cost estimates of reverse
mortgages?
Question 21. Would a table that demonstrates how the reverse
mortgage balance grows over time, using dollar amounts rather than
annualized loan cost rates in the current TALC table, help consumers to
better understand and evaluate the costs and the benefits of the
reverse mortgage? If so, what are the important features of such a
chart?
Question 22. Would consumers benefit from a tailored disclosure
informing consumers about how reverse mortgages work and about terms
and risks that are important to consumers when selecting a reverse
mortgage, instead of the generic brochures and booklets? If so, please
provide any research or analysis of material that would be beneficial.
III. Regulatory Matters
The Office of Information and Regulatory Affairs within the Office
of Management and Budget (OMB) has determined that this action is a
``significant regulatory action'' under Executive Order 12866.
Accordingly, OMB has reviewed this action. The information collections
contained in Regulation X, which implements RESPA, and Regulation Z,
which implements TILA, are approved under the Paperwork Reduction Act
by OMB and assigned Control Numbers 3170-0016 and 3170-0015
respectively. This Request for Information does not create or propose
any new information collections, or, in and of itself, materially alter
any existing ones.
Russell Vought,
Acting Director, Consumer Financial Protection Bureau.
[FR Doc. 2026-13834 Filed 7-8-26; 8:45 am]
BILLING CODE 4810-AM-P